Voltas, when contacted, refused to confirm that the deal was fully and formally sewn up. In a faxed response to The Financial Express, BN Garudachar, the official spokesperson of Voltas Ltd, said: "Voltas management has decided to lease out Voltas House and is negotiating with few companies including SBI. In order to make the building ready for lease, necessry repair/renovation work is being undertaken and will be completed soon."

Voltas has already prepared the property for lease by vacating all the employees to the Voltas Sagar office of the company at Chinchpokli. Voltas has also rented out some property at Balllard Estate itself where part of the employees are currently posted. Voltas House, primely located at Ballard Estate which measures around 33,000square feet, has five floors (of which the top floor is only a cafeteria). The company earlier had plans to lease out the entire area to a single party.

As early as in November 1997, in a letter addressed to the Voltas Employees Union, the chief manager in charge of industrial relations YM Joshi had hinted at the possiblity of leasing out Voltas House. The letter, dated November 14, says: "Vacating of Voltas House does not come under any provisions of the Industrial Law as the employees service conditions as well as existing settlement and agreements are not adversely affected. The company assures you that in case of renting or leasing of the company's property, the employees' service conditions will not be adversely affected."

Joshi also said in the letter "that vacating of the office premises will in no way cause any inconvinience to the employees. We expect from you positive response and suggestion of putting into use the company's asset in a more productive use which can be converted into a revenuegenerating activity in the present financial crisis." Although insiders insist that the estimate of all the real estate is ready and agreements with the State Bank Of India is also finalised, Voltas, however, says SBI is one of the negotiating parties, and that the deal has not been inked yet.