Lucknow's Sanjay fired a second successive 68 to rise from overnight tied third to the pole position with eight-under-136, while overnight leader Anirban Lahiri of Bangalore returned a one-under-71 after a double bogey on 11th hole to slip to second place, one shot off the lead.
Alipore-based Rahil Gangjee kept local hopes alive as he shot a 68 to end round two in tied third at six-under-138.
Gangjee's second round was punctuated by five birdies and a bogey and included two birdie putts from 20 to 25 feet.
Sanjay's 15-feet birdie putt on the first hole laid the platform for him on day two as the 42-year-old, a winner of six professional titles, consolidated thereafter with birdies on the fifth and 12th, sinking putts from eight to 12 feet.
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His only bogey came on the 13th where he missed a chip-putt.
Sanjay, who turned professional back in 1987, more than made up for his lapse on the 13th with birdie putts from a range of six to eight feet on the 15th and 17th.