Australia are in the box seat to win a gripping Boxing Day Test after routing India's top order on day four at the MCG.
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Set 292 for victory on Thursday, India are 6-117 at tea after a clinical performance from Australia's pace attack.
Peter Siddle (2-40), Ben Hilfenhaus (2-32) and James Pattinson (2-28) have each pinned down India's star-studded batting line up to leave their chase in tatters.
Virender Sehwag (seven) started the rot before lunch when he slashed hard at a wide delivery from a red-hot Hilfenhaus and Michael Hussey snaffled a terrific catch above his head at gully.
Fellow opener Gautam Gambhir was out for 13 when he dabbed his bat at a quick Siddle delivery on a good length and Ricky Ponting did the rest at second slip.
And the tourists slumped to 3-58 when Pattinson knocked over Rahul Dravid for 10.
It was the third time in the match 'The Wall' had been bowled after Siddle pierced his defence with a no-ball and Hilfenhaus eventually dismissed him for 68 in the first innings.
VVS Laxman, caught at short midwicket off Pattinson for one, and Vihrat Kholi, lbw to Hilfenhaus first ball, came and went within a heartbeat and India were suddenly on the ropes.
But the body blow came when hometown hero Siddle was brought into the attack from the Members End and had Sachin Tendulkar caught at gully with the first ball of his spell.
Captain MS Dhoni is 14 not out and No.8 R Ashwin, who has a Test century to his name, is unbeaten on 30 and will attempt to rescue the innings after the break.
Earlier Australia were bowled out for 240 inside the first session.
Veteran batsman Hussey fell 11 short of a fighting century as the home side on Thursday added 61 runs to their second-innings total after resuming at 8-179 in sunny but cool conditions at the MCG.
Hussey survived a caught behind appeal that replays showed was out only to be dismissed the next over for 89 when Zaheer Khan had him edging again to wicketkeeper Dhoni.
Hilfenhaus (14) was the other wicket to fall, caught at second slip off Ishant Sharma, while Pattinson (37) remained not out after the last-wicket pair conjured a handy 43-run stand.
The innings should have ended 37 runs earlier when Zaheer dropped Pattinson at short fine leg with the score at 9-203.
India launched a prolonged and angry appeal in the fourth over of the day when umpire Marais Erasmus failed to detect Hussey's fine edge which flew through to a diving Dhoni.
But with India's refusal to allow the use of the decision review system in this series they had no avenue to have the umpire's call reviewed.
If the tourists achieve their target it will be the highest successful run chase at the ground since South Africa made 4-297 to defeat Australia in 1952-53.
In his third Test emerging star Umesh Yadav led the Indian bowling attack with 4-70 and 33-year-old Zaheer completed a successful comeback from ankle surgery with 3-53. Spearhead Ishant also impressed and claimed 2-44.
The series-opening Test has see-sawed since Australia won the toss and batted on Monday.
Fifteen wickets fell on Wednesday when bowlers dominated despite there being no obvious signs of uneven bounce or menace in the day-three wicket.
Hilfenhaus had a day out with the ball. The Tasmanian seamer snared 5-75 in his Test return.
On Tuesday Indian stalwart Tendulkar was denied his 100th international century when Peter Siddle bowled the 38-year-old three balls from stumps.
