The proposed framework aims to provide legal certainty, consumer protection and regulatory oversight for the tokenisation of land assets. It is being developed with inputs from the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), and experts from industry, technology, law and academia.
“We are now bringing Maharashtra Digitisation and Exchange of Land Token Asset (Delta) Act, a legal framework for the blockchain-based tokenisation of land and other immovable assets,” Fadnavis said. He added that the land assets potentially covered under the framework are estimated to be worth around ₹50 lakh crore.
Fadnavis said the framework was being formulated carefully by bringing together expertise from regulators, stock exchanges, industry, technology, legal experts and academia.
“Innovation at this scale must be accompanied by legal consumer protection and regulator trust,” he said, adding that operationalising the Delta Act would require significant collaboration between the Union and state governments.
“Soon Maharashtra will become the first state to create such a legislative framework,” Fadnavis announced.
Land tokenisation refers to converting ownership or economic rights in a property into digital tokens recorded using blockchain technology. For instance, a property worth ₹1 crore could, depending on the legal structure, be represented by 1,000 digital tokens, with each token representing a portion of the property’s value or associated rights.
The model could allow investors to gain exposure to property without having to purchase an entire asset.
Explaining the significance of the proposed framework, Fadnavis said land has traditionally represented substantial wealth in India but often remains illiquid.
“For generations land has represented wealth in India but very often it is wealth without liquidity,” he said. A family may own an asset of significant value but still struggle to access capital against it efficiently. Similarly, entrepreneurs may hold valuable assets but be unable to unlock their economic potential quickly.
Fadnavis said tokenisation could help address this challenge by improving transparency and liquidity while enabling owners to unlock the economic value of their assets.
“This technology gives us the opportunity to change this. But let me make one thing absolutely clear. For us, tokenisation is not about speculation, it is about unlocking productive capital,” he said.
“It is about bringing transparency, it is about improving liquidity and making assets more productive and ultimately it is about converting dormant wealth into economic opportunity. That is what I mean when I speak about moving from potential to impact,” he said.
The proposed Delta legislation places legal certainty, consumer protection and regulatory oversight at the centre of Maharashtra’s planned framework for blockchain-based tokenisation of land and other immovable assets, with its operationalisation expected to require significant collaboration between the Union and state governments.
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