The filmmaker, known for movies like "Kabhi Khushi Kabhie Gham" and "My Name Is Khan", has tied up with Sony Entertainment Television to give a worthy platform to the winner.
The host of the show, Aditya Narain, broke the news to the top 12 shortlisted contestants on behalf of Karan - much to their excitement.
Karan praised "X-Factor", saying it is by far the best talent show and all three judges - Sonu Niigam, Shreya Ghoshal and Bhansali - are doing well. He was also heard saying that Bhansali is one of the "finest directors" of Bollywood, according to a source.
In fact, Johar and Bhansali even hugged each other - suggesting that they have moved on after their war of words.
Bhansali had taken a tad too seriously Johar's comment on "Saawariya" being a "blue film" and had lashed out against him in the media.
Johar reacted by saying in an interview: "Anyone who chooses the media as a form of communication is clearly not a friend. I think he needs to learn to take himself a lot more lightly than he does. It will be a good thing for him."
But now, all seems to be well between the two - at least by what seemed on the sets of the reality show.
The episode featuring Johar will be aired Friday, and the top 12 contestants will be revealed as well.