This comes as the state looks to unlock the “latent value”of land assets and create sources of revenue in its pursuit of becoming a $1 trillion economy by 2030.
On Monday, in a meeting chaired by Chief Minister (CM) Devendra Fadnavis, the state government discussed the draft of the proposed law, 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 CM’s office, Fadnavis told officials to propose the new legislation to harness the untapped value of immovable properties. 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 CM gave the instruction on forming an expert committee comprising representatives from the Securities and Exchange Board of India (Sebi), BSE, National Stock Exchange, 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 — through tokens issued based on the value of land.
The government said the legal framework would provide statutory protection to such transactions while ensuring clarity on 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, will be the first state in the country to introduce a law of this nature, according to the government.
The CM 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 is of the belief that digitising property transactions could reduce the time involved in 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 told the Urban Development Department and the Law and Judiciary Department to expedite work on this while also examining relevant rules framed by the central government.
He said blockchain-based asset tokenisation platforms were 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")