The government of Maharashtra is preparing legislation that could establish India’s first dedicated legal framework for blockchain-based real estate tokenization. The proposed law seeks to modernize land ownership, property transactions, and financing by enabling real estate assets to be represented as blockchain-based digital tokens.
According to reports, Chief Minister Devendra Fadnavis has instructed state officials to draft the Maharashtra Digitisation and Exchange of Land Token Assets Act. If enacted, the legislation would provide legal recognition for tokenized property ownership, allowing land and real estate assets to exist as verifiable digital records on blockchain infrastructure while preserving their legal validity.
The proposed Maharashtra Digitisation and Exchange of Land Token Assets Act would create India’s first legal framework specifically designed for blockchain-based real estate tokenization, potentially transforming how property ownership and transactions are managed.
The proposal was discussed during a meeting at the Sahyadri State Guest House, where the chief minister directed the administration to establish a committee comprising representatives from the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), blockchain specialists, and industry professionals. The committee has been tasked with reviewing international laws, regulatory frameworks, and market practices before submitting recommendations for the proposed legislation.
Global Models to Shape the Framework
Fadnavis indicated that Maharashtra intends to study successful tokenization initiatives implemented in other jurisdictions before finalizing its own regulatory structure. He stated that blockchain-based tokenization could increase the value of real estate assets while making transactions more efficient. He also noted that Maharashtra was the first Indian state to propose legislation dedicated to this area and emphasized that existing global legal frameworks, regulations, and operational practices would be examined during the drafting process.
Under the proposal, ownership rights or the value of land and real estate would be represented through blockchain-based digital tokens. Instead of relying exclusively on traditional paper-based documentation, property ownership and transfers could be securely recorded on a distributed ledger while retaining legal recognition under state law.
Officials explained that each digital token would correspond to the value of the underlying property, improving transparency and streamlining transactions. The state government also believes that tokenization could help property owners unlock economic value that is currently difficult to access due to lengthy documentation, title verification procedures, and legal formalities associated with property sales and financing.
The framework is designed to digitize land records through blockchain, enabling faster property transfers, improved transparency, and more efficient use of real estate as collateral for loans.
Fadnavis further indicated that blockchain-based land tokenization could significantly reduce the time required to complete property transactions and secure loans backed by real estate. He suggested that the system could simplify administrative processes while making property assets more accessible for financial purposes.
Expanding Maharashtra’s Blockchain Strategy
The latest proposal builds upon Maharashtra’s broader efforts to integrate blockchain technology into public administration. Earlier this month, the state became the first in India to recognize cryptocurrencies as recoverable property after amending the Maharashtra Protection of Interest of Depositors (MPID) Act. The amendment allows authorities to seize, value, and liquidate digital assets during investigations involving financial fraud.
Unlike the earlier initiative, which focused primarily on digital asset enforcement, the proposed legislation extends blockchain adoption into real-world asset management. The move reflects a broader shift in the state’s approach, viewing distributed ledger technology as a tool for modernizing traditional sectors beyond cryptocurrency.
The proposal also comes amid ongoing discussions surrounding India’s digital asset regulations. Industry leaders have recently argued that the country’s cryptocurrency tax regime remains among the strictest globally and have suggested that clearer regulatory policies could strengthen India’s position in the digital asset economy. Against this backdrop, Maharashtra’s initiative signals that policymakers are increasingly exploring blockchain applications in mainstream industries such as real estate.
If approved, the legislation could position Maharashtra as a national leader in blockchain-powered property infrastructure and establish a model that other Indian states may adopt for tokenized real estate markets.
Although the expert committee has only begun its review, the proposed law has the potential to become one of India’s most significant blockchain policy initiatives. By creating a legal framework for tokenized land ownership, Maharashtra could pave the way for wider adoption of distributed ledger technology in property markets while improving efficiency, transparency, and accessibility across the real estate sector.
