World number 36 Anand squandered a first game advantage to suffer a 21-14 12-21 12-21 defeat against Chou in a 51-minute men's singles match. This was Anand's third defeat to Chou. He had lost to the Taiwanese shuttler in German Open this year.
Pawar had fended off the challenge from another German Tobias Wadenka 21-11 21-4 in the second round.
Top Indian male shuttler Parupalli Kashyap eased into the third round. The third seed Indian took 33 minutes to dispose off Lukas Schmidt of Germany 21-15 21-14 last night to secure his place in the pre-quarterfinals of the men's singles event.