Dharma and Feroz were at tied six-under 138 at the Rs. 60 lakh event.
The trio of Jaipur's Vishal Singh, Om Prakash Chouhan of Mhow and Noida's Gaurav Pratap Singh were tied third at three-under-141.
The cut was declared at five-over-149 on a day that saw early morning rain and the subsequent one-hour delay in start of play. A total of fifty-six professionals made the cut.
Dharma, a winner on the PGTI in 2013, then stitched together four successive birdies from the 14th to 17th to get on a roll. He chipped-in after missing the green on the par-3 14th and thereafter made chip-putts from the edge on the next two holes. The 29-year-old made it four birdies in a row on the 17th when he drained a 20-footer. Dharma gained two more strokes on the first and sixth where he landed his wedges within three feet.
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Vishal Singh shot the tournament's best score so far, a seven-under-65, to move into joint third at three-under-141. Vishal landed it within five to seven feet on all seven occasions where he picked up birdies.
Round one joint leader Om Prakash Chouhan slipped to tied third after his second round of 73. Gaurav Pratap Singh fired a 68 to also grab a share of third place.
Defending champion Mukesh Kumar (73-78) missed the cut as he totaled seven-over-151 to be tied 59th.