At a meeting chaired by Chief Minister Devendra Fadnavis on Monday, the state discussed the draft of the proposed Act, which seeks to create a legal framework for the digitisation and tokenisation of land assets using blockchain technology.
According to a statement issued by the Chief Minister's Office, Fadnavis directed officials to propose the new legislation to harness the untapped value embedded in immovable properties for public benefit. He said the law should have the capacity to unlock the "latent value" of such assets while ensuring legal certainty for blockchain-based transactions.
As part of the exercise, the chief minister directed the formation of an expert committee comprising representatives from the Securities and Exchange Board of India (Sebi), BSE, and NSE, along with domain experts and experienced professionals, to prepare a comprehensive draft of the legislation.
The proposed law aims to create a fully digital ecosystem in which immovable properties can be tokenised based on their underlying value, enabling transactions through blockchain technology, with transactions taking place through tokens issued based on the value of land.
The government said the legal framework would seek to provide statutory protection to such transactions while ensuring clarity over property ownership.
Fadnavis also asked officials to study international laws, regulations, and operational frameworks governing asset tokenisation before finalising the legislation. Maharashtra, if it proceeds with the proposal, would become the first state in the country to introduce a law of this nature, according to the government.
The chief minister said the proposed legislation should build on Maharashtra's history of pioneering reforms and position the state as a leader in adopting emerging technologies for governance and economic development.
The government believes digitising property transactions could significantly reduce the time involved in property sales and purchases, as well as in mortgaging assets to banks for loans. It also expects tokenisation to help property owners monetise the otherwise unrealised value of their assets.
Fadnavis directed the urban development department and the law and judiciary department to expedite work on the proposed legislation while also examining relevant rules framed by the central government.
He said blockchain-based asset tokenisation platforms are gaining traction globally and Maharashtra should move quickly to establish an enabling legal framework. Besides improving transaction efficiency, the proposed law could also augment the state's revenue, he added.
Minister of State Madhuri Misal and senior government officials attended the meeting.
 "Devendra Fadnavis")