Keystone Realtors buys Rs 143-crore development rights for Versova project

Keystone Realtors has acquired development rights worth Rs 143.45 crore from Parth Construction to increase the buildable area of its Versova redevelopment project

Realty developer Keystone Realtors has acquired fungible floor space index (FSI) worth Rs 143.45 crore from Parth Construction to augment the development potential of its upcoming residential project in Versova, Mumbai, according to property registration documents reviewed by CRE Matrix. 

 

As per the agreement, Parth Construction is selling 8,800.74 square metres of fungible FSI, generated from its SRA slum rehabilitation project in Jogeshwari ( East), Mumbai to Keystone Realtors. 

 

Keystone will club this FSI into its own development projected located in Versova, Andheri West. 

 

Here are the details of the agreement: 

 

The agreement, registered on June 17, 2026, pertains to the purchase of 8,800.74 square metres of FSI from a composite building being developed by Parth Construction at Village Majas, Jogeshwari (East). Keystone paid Rs 8.61 crore in stamp duty for the transaction.

 

 

As part of the transaction, the acquired development rights will be "clubbed" and transferred to Keystone's redevelopment project located at CTS No. 1176 (Part), Survey No. 121/5, Village Versova, Andheri, enabling the developer to increase the permissible built-up area at the site. The deal also includes 24 car parking spaces, according to the agreement.

 

The total consideration for the FSI purchase stands at Rs 143.45 crore, significantly higher than the government's assessed market value of about Rs 55.54 crore, indicating the premium attached to transferable development rights in Mumbai's western suburbs.

 

The documents show that the FSI originates from a slum rehabilitation scheme being executed by Parth Construction at Village Majas. The project has received approvals under the Slum Rehabilitation Authority (SRA) framework and comprises 534 rehabilitation units and 700 sale units, with a sanctioned sale component of over 33,000 sq m.

 

Keystone, which operates under the Rustomjee brand, had entered into a development agreement in March 2025 to redevelop the Versova property. The newly acquired FSI will be utilised in that redevelopment project in accordance with the Development Control and Promotion Regulations (DCPR), 2034.

 

The transaction highlights developers' continued use of FSI transfers and fungible development rights to maximise project potential in land-constrained micro-markets such as Andheri and Versova, where acquiring additional buildable area is often more economical than purchasing fresh land parcels.

 

How does this FSI transaction work?

 

Floor Space Index (FSI), also called Floor Area Ratio (FAR), determines how much construction is allowed on a plot of land. For example, if a developer owns a 1,000 sq m plot with an FSI of 2, it can build 2,000 sq m of saleable built-up area.

 

In this case, Keystone Realtors has not purchased land from Parth Construction. Instead, it has purchased 8,800.74 sq m of development rights (FSI) generated at Parth's slum rehabilitation project in Majas, Jogeshwari (East).

 

Under Mumbai's development regulations, certain projects—especially slum rehabilitation projects—generate surplus or fungible FSI that can be transferred and used at another eligible project through a process known as FSI clubbing or transfer. The agreement specifically states that the FSI will be transferred ("clubbed") from Parth's Composite Building in Majas to Keystone's redevelopment project in Versova, Andheri.For Keystone, the Rs 143.45-crore transaction effectively increases the development potential of its Versova project while avoiding the need to buy additional land.

 

Hence, think of FSI as "building rights." Keystone has bought the right to construct an additional 8,800.74 sq m at its Versova project from another developer, rather than buying another piece of land.