Lahiri, who shot eight-under 63 in the first round, hit a double bogey on 16th and slid down. He was two-under through 15 holes in second round and in shared lead, when a double bogey on the par-three 16th cost him heavily.
He finished the second round at even-par 71 and a total of eight-under, the same as first day. But he slipped from first to eighth, as veteran Thomas Bjorn (66) and Stephen Gallacher (65) were in tied first place at 10-under.
Shiv Kapur ensured he would play the weekend rounds with cards of 70 and 69, while Gaganjeet Bhullar, who shot 68 in first round, battled to an even-par 71. Kapur and Bhullar were tied 30th at three-under 139.
Jeev was set to make the cut at one-under as he overcame early problems to get back to two-over for the day but then a double-bogey on the 18th saw him miss the cut.
He earlier had four bogeys and a double bogey besides four birdies in his 75 after a first round 68. SSP Chowrasia (73-71), C Muniyappa (71-74), Digvijay Singh (78-68) and Himmat Rai (73-74) also missed the cut.