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Defending champions Chennai Super Kings won by 6 wickets at Chepauk.
Australia need 202 runs more with six wickets in hand at the end of day three of the second Test.
Hazlewood's inexorable line and length, just on off stump and ducking away, was too much for the New Zealand top order.
The defeat leaves New Zealand with only one win in 24 Tests against their neighbours this century ahead of the second and final match in the series in Christchurch starting on Friday.
Ranveer Singh, who wore a white trouser suit, was seen goofing around with badminton power couple Saina Nehwal and Parupalli Kashyap at the event.
She will be joined by the likes of Cate Blanchett, Dua Lipa, Cate Blanchett, among others.
Australia's all-formats hero became the most expensive player in the history of the league after attracting the eye-watering bid from Kolkata Knight Riders.
Leg-spinner Shreyas Gopal, who moved over to Kerala from Karnataka this season, was the lone player from the state to be bought in the auction.
The left-arm pacer broke Australian captain Pat Cummins' mark of Rs 20.5 crore set earlier in the day.
Back after an eight-year gap, left-arm quick Starc was in demand as soon as his name was put under the hammer.