Jeev Milkha Singh went to 75 and just about made the cut at two-over, while Shiv Kapur, who had a fine first round at 70, missed the cut with a 77 in second round at three-over. The cut came at two-over.
Bhullar had a terrible opening with three bogeys in the first four holes. A birdie on the fifth was followed by a bogey on sixth.
He turned in 39, but had two birdies and one bogey on back nine for a total of 74.
Jeev had three bogeys, a double bogey and just one birdie in his 75. Kapur had five bogeys, a double bogey and just two birdies in his 77 and missed the cut.
Sweden's Mikael Lundberg moved into a share of the lead with Jose Manuel Lara on seven-under. Lundberg, who lost his playing card last season, has been playing on The Challenge Tour in 2011.
Lara, after a first round 69, signed for a four-under 68 to advance to seven-under at Prosper Golf Resort. Lundberg shot a second straight 68.