Lahiri, starting on the 10th, was five-under through 15 holes before dropping a double bogey on the seventh, his 16th hole of the day.
His round of 69 placed him tied eighth and four-behind joint leaders Prom Meesawat of Thailand and Swede Rikard Karlberg.
Jyoti Randhawa and SSP Chowrasia shot two-under 70 each to be tied 17th, while Rahil Gangjee, who had five different outcomes on five successive holes from 10th to 14th, shot 71 to be tied 31st.
Digvijay Singh (72) was 42nd, while Chiragh Kumar, Sujjan Singh and Abhinav Lohan carded 75 each to be 86th and Himmat Rai shot 77 to be tied 122nd.
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Describing his travails on the seventh, he said, "I was in the fairway trap and over-calculated the wind and hit it over the back and got my ball plugged in the downslope of the greenside bunker. It was impossible to hit a clean shot from there and I hit my next shot into the other greenside bunker!"
Interestingly, Prom lives in Hua Hin, while Karlberg, puts down Hua Hin's Black Mountain as his home course. Both shot seven-under-par 65 at the USD one million event.
Karlberg also celebrated his engagement to long-time girlfriend, while Prom, who lost play-offs in the Philippines and Hong Kong late last year, is propelled by the need to win here to earn his place with Team Asia at the inaugural EurAsia Cup in Malaysia in March.
The conditions were gusty in the morning, but the 29-year-old Prom did well to land two eagles, five birdies and two bogeys.