Maharashtra is set to introduce a new legal framework aimed at enabling the digitisation and exchange of land token assets through blockchain technology. The proposed legislation is expected to allow real estate properties to exist as secure and verifiable digital assets, helping property owners unlock the hidden value of their holdings.
Chief Minister Devendra Fadnavis has directed the state administration to prepare a draft of the Maharashtra Digitisation and Exchange of Land Token Assets Act. The move was announced during a meeting held at the Sahyadri State Guest House, where the Chief Minister also instructed the formation of a committee comprising representatives from SEBI, BSE, NSE, along with technology experts and professionals from the sector, to develop a comprehensive framework for the proposed law.
Fadnavis said blockchain-based tokenisation could transform the way real estate assets are valued and traded in the future. “The value of real estate will be increased by tokenising them through the blockchain method. For this, the laws, rules and practices currently existing in the world should be studied. Maharashtra is the first state in the country to propose such a law,” he said.
Under the proposed system, real estate assets would be converted into digital tokens based on their value, allowing transactions to be carried out through a secure blockchain network. The government believes that establishing clear legal safeguards will be crucial to ensure transparency and confidence in such transactions, leading to the creation of the proposed legislation.
Highlighting the limitations of the existing property transaction process, Fadnavis said digitisation could make buying, selling and financing real estate more efficient.
“In the current process, whether it is a purchase and sale transaction or the process of providing loan collateral to banks, it is time-consuming. If this entire process is digitised and brought in the form of tokens, it will bring dynamism. Also, the property owner can get great benefits by identifying the hidden value of their property,” said Fadnavis.
The proposed law could position Maharashtra as the first state in India to create a dedicated framework for blockchain-based real estate tokenisation, potentially reshaping property ownership, investment and financing models.
Source: The Times of India
