The Odisha girl now sits pretty at the top with 7.5 points, while Swati who was in joint lead till yesterday, now shares the second spot with Pratyusha Bodda of Andhra Pradesh with 6.5 points apiece.
A point behind on 5.5 Soumya Swaminathan of PSCB and Bhakti Kulkarni of Goa.
In a crucial match between the overnight leaders Padmini and Swati, the latter unexpectedly went down rather tamely, as she lost the exchange of rook for bishop on the 21st move.
In an already superior position, Padmini delivered the coup de grace by sacrificing her queen to set up mate with her rook and knight.
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Pratyusha Bodda of Andhra Pradesh made good use of her extra pawn against world U-14 girl's champion R Vaishali of Tamil Nadu in a Benko Gambit.
Vaishali could not stop the advance of her opponent's a -pawn and resigned on the 43rd move.
Bhakti Kulkarni of Goa, playing white, against Priyanka Nutakki of Andhra Pradesh won the exchange and later a piece after which her opponent resigned.
Playing white, Varshini was content with exchange of pieces and though she won a pawn in the rook ending, it did not offer her any chance of a win and a draw was finally agreed upon on the 73rd move.
Michelle Catherina of Tamil Nadu held Tania Sachdev of Air india to a draw in a knight versus bishop ending.
Neha Singh of Bihar lost a piece against K Priyanka of Tamil Nadu in a Centre Counter defence but continued for some time before finally throwing in the towel on the 77th move.