Maharashtra Drafts India's First DELTA Act for Property Tokenization

Maharashtra moves to draft India’s first property-tokenization law Maharashtra has kicked off work on what could become India’s first dedicated legal framework for tokenizing immovable property. Chief Minister Devendra Fadnavis has asked officials to prepare draft legislation for the proposed Maharashtra Digitisation and Exchange of Land Token Asset Act (DELTA Act), a blockchain-enabled scheme designed to digitize and trade tokenized interests in land and real estate. What the DELTA Act would do - Tokenize immovable property on a blockchain-backed digital framework so ownership or value interests can be represented and transferred via tokens. - Allow fractional ownership and token-based transactions that could unlock liquidity trapped in real estate and make high-value assets accessible to smaller investors. - Draw on international regulatory models and industry practices, per Fadnavis’s instruction to study global frameworks. Why Maharashtra is moving now Fadnavis chaired a meeting in Mumbai to review the draft and told officials to fast-track the proposal as part of the state’s push to become a $1 trillion economy by 2030. He framed property tokenization as a means to unlock value embedded in land for broader public benefit. Mumbai’s enormous real estate market is a key focus: earlier comments by Fadnavis suggested digitizing asset transfers in the city could free up an estimated ₹50 trillion of idle capital. Who’s drafting the law An expert committee will prepare the legislative framework, with representatives from the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), domain specialists and industry professionals. The committee’s remit includes benchmarking international laws and regulatory approaches to ensure the draft follows global best practices. Context in India’s evolving tokenization debate Tokenization of real-world assets has been gaining traction in India, even as national policy on cryptocurrencies remains cautious. Last December, MP Raghav Chadha urged Parliament to introduce a standalone Tokenization Bill to enable fractionalized ownership of commercial real estate, infrastructure and IP — and to set up a regulatory sandbox for new models. Advocates argue tokenization could broaden investment access for the middle class by lowering capital barriers to entry. Existing projects and regulatory reality A handful of tokenized real-estate projects already operate in regulated pockets, notably in GIFT City where providers such as Tokeny and Terazo have used SPVs and public blockchains like Polygon to create tokenized structures. Those initiatives are still conducted under existing securities and virtual digital asset rules rather than bespoke tokenization legislation. Regulatory headwinds: crypto vs. tokenization India’s central regulators remain cautious about cryptocurrencies. Documents reviewed by Reuters show the Reserve Bank of India has again recommended keeping cryptocurrencies and privately issued stablecoins largely outside the regulated banking system, citing financial stability and monetary-sovereignty concerns. The Income Tax Department has also warned of enforcement challenges with cross-border crypto transactions and self-custodied wallets, despite a 30% tax on crypto gains. Compliance tightening has already begun: India’s Financial Intelligence Unit has instructed major exchanges to retain records of over-the-counter crypto trades above $10,000 from January 2026, including beneficial ownership and source-of-funds details. New FIU guidance also calls for stricter customer verification (live selfies, geolocation checks, periodic updates). Where Maharashtra’s move fits globally Several jurisdictions — including the UAE, Singapore, Hong Kong, Germany and the United States — have already piloted or implemented regulated frameworks for tokenized real-world assets and fractional ownership. Fadnavis said Maharashtra’s draft would draw lessons from those models. Next steps The proposal now enters the drafting phase. The expert committee will develop the legal text and regulatory architecture before any bill is formally introduced. If passed, the DELTA Act would mark a significant step toward integrating blockchain-based asset tokenization into India’s property and capital markets.