Maharashtra Begins Drafting DELTA Act, India's First Blockchain Law for Land Tokenization

Maharashtra is moving to create what may become India's first dedicated legal framework for tokenizing land and real estate. Chief Minister Devendra Fadnavis has directed officials to draft the Maharashtra Digitisation and Exchange of Land Token Asset Act (DELTA Act), a blockchain-enabled statute designed to digitize and facilitate the exchange of tokenized interests in immovable property. Supporters say a DELTA-style regime could let land and property be represented as blockchain-based digital tokens, opening the door to fractional ownership, simpler transfers and the potential to mobilize capital that is typically locked up in illiquid real estate. Fadnavis framed the initiative as part of Maharashtra's ambition to become a $1 trillion economy by 2030, arguing that tokenization could "unlock the value embedded in land and real estate assets for public benefit." If enacted, Maharashtra would be the first Indian state with a statute specifically tailored to blockchain-based property tokenization. Under the proposal, tokenization would operate on a blockchain-enabled digital framework, with transactions executed through tokens linked to underlying asset value. The state also plans to form an expert committee including representatives from SEBI, BSE and NSE, alongside domain specialists and industry professionals, to develop a comprehensive legislative blueprint. Officials have been instructed to review international regulatory models, market practices and legal precedents while shaping the draft. The push comes as interest in tokenizing real-world assets grows among Indian policymakers, even as India still lacks a standalone national law for tokenized assets. In December, MP Raghav Chadha urged the central government to introduce a Tokenization Bill and create a regulatory sandbox to allow new structures to be tested under supervision. In Maharashtra, Fadnavis has previously highlighted the scale of the opportunity: in November 2025, he said digitizing asset transfers could release an estimated ₹50 trillion in idle capital, particularly in Mumbai's property market. Some regulated tokenization activity already exists. In GIFT City, platforms including Tokeny and Terazo have launched tokenized real estate structures using SPVs and public blockchains such as Polygon, operating under existing securities and virtual digital asset rules rather than a bespoke property-tokenization law. National regulators, though, remain cautious on crypto. Documents reviewed by Reuters show the Reserve Bank of India has recommended keeping cryptocurrencies and privately issued stablecoins outside the regulated banking system, citing financial stability and monetary sovereignty risks. Enforcement and taxation challenges also persist: India's Income Tax Department has warned of difficulties tracking crypto transactions routed through overseas exchanges and self-custodied wallets, despite the 30% tax on crypto gains. Oversight is tightening in practice. India's Financial Intelligence Unit has ordered crypto exchanges to retain records of OTC cryptocurrency transactions over $10,000 from January 2026, including beneficial ownership, source of funds and destination wallets. Separate FIU guidance has also introduced tougher KYC standards, including live selfie checks, geolocation verification and periodic customer record updates based on risk profiling. Globally, jurisdictions such as the UAE, Singapore, Hong Kong, Germany and the United States have already tested or implemented regulated frameworks for tokenized real-world assets and fractional ownership. Fadnavis said Maharashtra will draw on these international models and best practices. The DELTA Act remains in the drafting stage. The state's expert committee will develop the legal framework before any bill is introduced for legislative consideration. If the proposal advances, it could become a significant milestone for blockchain use in Indian real estate, while raising a new set of legal, tax and regulatory questions that would need to be addressed.