Chadha is one behind the co-leaders, Chinese Taipei's Chan Shih-chang and Denmark's Thomas Bjorn, both shooting 66.
Another Indian Rashid Khan scored three-under 69 to be tied seventh, while Khalin Joshi carded 71 to be tied 16th.
Rashid, two time winner on Asian Tour in 2014, was also member of the Asian Games team in 2010, while Joshi is coming from a win on Indian Tour last month.
Daniel Chopra, winner of the Asian Tour Q-School, was lying 38th with a score of 73.
With Anirban Lahiri, winner of the event in 2014, now playing in US, Chadha was the pick of the Indians.
He began from the 10th and started with five pars before finding a hole in one on the 15th, which was his sixth hole. He birdied the 18th and then bogeyed the first. Chadha closed strongly with three birdies in last four holes for a fine 67.
The hole-in-one set the Indian on his way to a promising start.
"It was good today. I started off well by getting a hole-in-one on the 15th and that really kept myself in it. I hit a six-iron, aimed straight at the flag and it went right into the hole. I've made a hole-in-one in my career but this is really special as I've made it on the Asian Tour," he said.
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