2-(Arylsulfonyl)indane-1,3-diones, earlier synthesized by Claisen condensation involving diethyl phthalate and aryl methyl sulphones, are found to be potent blood anticoagulants. In search of improved analogs of 2-(arylsulfonyl)indane-1,3-dione, we have synthesized them (7 a-f) by a different route involving Knoevenagel reaction between phthalic anhydride and arylsulfonylacetates in the presence of pyridine-piperidine medium for the first time. The synthesized 2-(arylsulfonyl)indane-1,3-diones were evaluated for antimicrobial and anticoagulant activities and all of them registered significant activity.