The home favourite emerged as the only player to return with double digits on 10-under 134 in the event sanctioned by the Asian Tour and Professional Golf Tour of India (PGTI).
Wade Ormsby of Australia, aiming to become the first player to successfully defend the Panasonic Open India title, rolled in five birdies to stay in the hunt following a 68 at the challenging Delhi Golf Club.
"You can't take anything lightly on this golf course no matter how much you are leading by. Anything can happen but you can really go low on this course if you are hitting well, which I am doing at the moment," said the 36-year-old Gangjee.
While many players choose not to use the driver at the tree-lined DGC, Gangjee used the big stick to great effect on the course which punishes wayward drives because of thick bushes surrounding the narrow fairways.
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