Summary of this article
Maharashtra drafts DELTA law for blockchain-based property tokenisation framework.
Expert committee to study regulations, ownership rights and legal safeguards.
Tokenisation aims to unlock asset value and improve transactions.
Maharashtra has initiated the process of drafting a law to enable blockchain-based tokenisation of land and other immovable properties. Chief Minister Devendra Fadnavis on Monday directed officials to prepare the proposed legislation and develop a legal framework for the initiative.
The directions were issued during a review meeting held at Sahyadri Guest House in Mumbai, where Fadnavis reviewed the progress of the proposed DELTA (Maharashtra Digitisation and Exchange of Land Token Assets) legislation. According to PTI, Fadnavis said the initiative should help unlock the latent value of immovable assets and create new revenue opportunities as Maharashtra works towards its goal of becoming a USD 1 trillion economy by 2030.
Under the proposed system, digital tokens could represent the value of such assets, while the government plans to develop a legal framework covering ownership rights and other regulatory aspects.
As part of the process, Fadnavis directed officials to constitute an expert committee comprising representatives from the Securities and Exchange Board of India (SEBI), Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and industry specialists. The committee will assist in preparing the legal framework and examining regulatory aspects related to asset tokenisation.
The chief minister also asked officials to study international regulations, laws and platforms governing asset tokenisation before finalising the framework. The proposed legislation will also take inputs from industry bodies, legal experts, researchers and start-ups to address possible gaps in the system.
Land tokenisation refers to the process of using blockchain technology to create digital tokens that represent the value or ownership interest of a real estate asset. These tokens can potentially provide a digital representation of property assets, although the legal and operational framework for such a system is still being developed in the state.
Maharashtra may become the first state to propose a blockchain-based land tokenisation law.
The government has said that digitisation through tokenisation could make property transactions and the use of immovable assets as collateral for loans more efficient. Fadnavis also highlighted that the existing processes involving property transactions and mortgages can be time-consuming, and tokenisation could help property owners unlock the untapped value of their assets.
Also, the Urban Development Department and the Law and Judiciary Department have been directed to speed up work on the proposed legislation after examining relevant central government regulations.
