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Canara Bank Invites Bids to Sell ₹577 Crore Supreme Housing Debt

Published: February 11, 2026 | Category: real estate news
Canara Bank Invites Bids to Sell ₹577 Crore Supreme Housing Debt

Mumbai: Canara Bank has invited offers from financial institutions and asset reconstruction companies (ARCs) to sell its ₹577 crore debt of real estate company Supreme Housing and Hospitality. The debt is being auctioned through a Swiss challenge auction with a reserve price of ₹500 crore.

The Bangalore-based lender has also, simultaneously, filed a petition in the Mumbai NCLT to re-start insolvency proceedings against the company. This move comes after a one-time settlement (OTS) offer by the company in July failed to materialize, according to a person familiar with the details.

Through this auction of the debt, the bank hopes to gauge investor interest in the company while awaiting direction from the Mumbai NCLT. The company had initially made an OTS offer of ₹450 crore back in July, which led to the withdrawal of the initial insolvency plea. However, the company failed to honor its commitment, prompting the bank to file a fresh bankruptcy plea.

Canara Bank is the lead lender to Supreme Housing with outstanding dues of ₹577 crore. In a web notice for the Swiss auction, the bank has called for initial bids by February 21, followed by the declaration of an anchor bidder by February 25. An electronic auction to challenge the initial bid will be conducted on March 13, as per the bank’s notice.

This is the second time the company has been withdrawn from insolvency proceedings. A similar settlement was reached in November 2022. Supreme Housing is primarily a residential real estate company with projects in Pune and Mumbai. The bank’s efforts to recover the debt and ensure the company’s financial stability are ongoing.

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Frequently Asked Questions

1. What is
Swiss challenge auction? A: A Swiss challenge auction is a procurement method where an initial bidder (anchor bidder) is selected, and other bidders can challenge this initial bid through a competitive bidding process. The highest bidder wins the auction.
2. Why is Canar
Bank selling Supreme Housing's debt? A: Canara Bank is selling the debt to recover the outstanding dues of ₹577 crore. The bank aims to gauge investor interest and ensure financial stability by selling the debt through a Swiss challenge auction.
3. What happened to the one-time settlement offer by Supreme Housing?
Supreme Housing had made a one-time settlement (OTS) offer of ₹450 crore in July, which led to the withdrawal of the initial insolvency plea. However, the company failed to honor its commitment, prompting Canara Bank to file a fresh bankruptcy plea.
4. What is the reserve price for the debt sale?
The reserve price for the debt sale of Supreme Housing's ₹577 crore debt is ₹500 crore.
5. What are the key dates for the Swiss challenge auction?
The key dates for the Swiss challenge auction are: initial bids by February 21, declaration of the anchor bidder by February 25, and the electronic auction to challenge the initial bid on March 13.