Real estate company Supreme Housing and Hospitality (SHH) has secured approval from its lenders for a ₹522-crore one-time settlement (OTS) offer to resolve its outstanding debt of nearly ₹700 crore. The proposal, led by Canara Bank, received 95% voting support from the participating lenders, translating into a recovery of just under 75% of their total claims.
The approval marks an important step in the company’s efforts to address its outstanding financial obligations and complete the resolution of legacy debt. The settlement will now be placed before the National Company Law Tribunal (NCLT) for approval.
The agreement covers both fund-based and non-fund-based exposure to Supreme Housing and Hospitality. The non-fund exposure primarily relates to corporate guarantees provided by the company for borrowings of its subsidiary entities, Supreme Infrastructure and Supreme Ahmednagar Karmala Tembhurni Tollways.
The settlement process was initiated after SHH deposited ₹200 crore in July 2026. The subsequent approval of the ₹522-crore proposal is expected to facilitate the closure of its outstanding obligations to the participating banks, subject to the required regulatory and legal processes.
Canara Bank to Receive ₹475 Crore from Settlement
Canara Bank accounts for the largest share of the settlement amount, with approximately ₹475 crore expected to be paid to the lender. The Bengaluru-headquartered bank has the only fund-based exposure to Supreme Housing and Hospitality, with outstanding dues of around ₹593 crore.
The proposed settlement amount represents a recovery of approximately 80% for Canara Bank. The remaining participating lenders have non-fund-based exposure through corporate guarantees issued by SHH for its subsidiary companies.
Apart from Canara Bank, the lenders participating in the settlement include State Bank of India (SBI), Punjab National Bank (PNB), Indian Bank, Union Bank of India and Bank of India. Their claims are linked to the corporate guarantees extended by Supreme Housing and Hospitality for the financial obligations of its subsidiaries.
The settlement covers the claims of all participating lenders, bringing together the company’s direct financial exposure and obligations arising from guarantees provided to its group entities.
Company Confirms Resolution of Legacy Debt
Supreme Housing and Hospitality confirmed the settlement in a company statement, describing it as a step towards addressing its entire legacy debt and completing its financial restructuring.
The company stated that following the implementation of the settlement, it had received full and final no-dues certificates from the respective creditors, confirming the closure of their settled claims under the scheme.
The development is expected to provide greater clarity on the company’s outstanding financial obligations and its future business operations. Resolution of the legacy debt could also help the company focus on its ongoing activities without the burden of the earlier lender claims.
However, the settlement remains subject to the NCLT approval process, which is the next step following the lenders’ voting decision.
Kalyan Group Likely to Invest in Supreme Housing
Indore-based Kalyan Group is understood to be the likely investor in Supreme Housing and Hospitality. The potential investment is expected to support the company’s financial restructuring and help it meet its settlement obligations to lenders.
The proposed investment comes at a time when the company is working towards resolving its outstanding liabilities and restructuring its financial position. However, further details regarding the investment, including its structure and financial commitment, have not been disclosed.
The company could not be immediately contacted for additional comments on the proposed investment.
Debt Resolution Could Support Future Business Operations
The ₹522-crore settlement represents a significant development in Supreme Housing and Hospitality’s efforts to address its legacy financial liabilities. With lenders approving the proposal through a 95% vote, the company has secured broad support for the resolution of its outstanding claims.
For the participating banks, the arrangement provides an opportunity to recover a substantial portion of their dues rather than continue with the existing exposure. Canara Bank, in particular, is expected to recover around 80% of its outstanding fund-based claims.
For SHH, the settlement could provide a clearer financial position once the required approvals and implementation formalities are completed. The potential investment from Kalyan Group may further support the company’s efforts to meet its financial commitments and move ahead with its business plans.
