Dharma's total score was 11-under-199 which was one stroke better than Delhi's Ashok Kumar and Vijay Kumar of Lucknow who shot the week's joint best score of eight-under-62 to be tied in second place going into the final round tomorrow.
Round one leader Udayan Mane of Bengaluru will be another challenger on the final day as he occupies fourth place at nine-under-201 thanks to his third round of 66 today.
Ajeetesh Sandhu also shot the week's best of 62 courtesy a chip-in eagle, seven birdies and a bogey.
Overnight joint leader, Chandigarh's Abhijit Singh Chadha, slipped to tied 22nd at three-under-207 after a poor third round of 74.
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Dharma (69-67-63), who started the day in tied 11th, zoomed to the top of the pack with eight birdies and a solitary bogey. He was poised to win his second title after clinching his first two years back in Jamshedpur.
"I was particularly thrilled about making a fantastic recovery on the par-5 fourth. I found the trees on the fourth but still managed to extract a birdie there thanks to a brilliant third shot," he added.
Dharma, however, is not going to have it easy on day four as the seasoned duo of Ashok Kumar (69-69-62) and Vijay Kumar (70-68-62) lie just one shot behind him at 10-under-200.