Resuming at the overnight score of 311 for four, India lost their last six wickets for just 97 runs to be bowled out for 408 in 109.4 overs with debutant Josh Hazlewood being the wrecker-in-chief with figures of 5 for 68.
Australia recovered from some early jitters to reach 221 for four in 52 overs in their first innings before the second day's play was called called off early due to bad light.
Captain Steve Smith was comfortably batting on 65 off 88 balls with the help of six boundaries and two sixes, while giving him company at the other end was Mitchell Marsh (7).
Opener Chris Rogers also returned to some kind of form for Australia with strokeful 55 off 79 balls. He hit 10 fours during his knock.
David Warner (29), Shane Watson and Shaun Marsh (32) all got starts but the trio failed to convert the starts into big scores.
Playing his first Test match since 2012, Yadav turned out to be the most impressive Indian bowler, picking up three wickets for 48 runs, while off-spinner Ravichandran Ashwin (1/66) took the other Australian wicket to fall on the day.
Except Mitchell Marsh (1/14), Australia had all their other bowlers back in the field and looked to improve their performance from the third and final session last evening.
And they succeeded, particularly Hazlewood as he bowled a nagging off-stump line and moved the second new ball enough to trouble the Indian batsmen.
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