In 1935, he was promoted to the rank of komdiv (Division commander) 
In 1938, Podlas was appointed deputy commander of Kiev Special Military District; shortly thereafter he was appointed commander of the 1st (Coastal) Army of the Far Eastern Military District which took part in Battle of Lake Khasan.
Shortly thereafter he was arrested and sentenced to 5-year imprisonment. However, in 1940 he was released among a few other general officers such as Gorbatov and Rokossovsky and reinstated in his previous position. Following adoption of General ranks in the Red Army, he was created Major General.
In August 1941, he took command of the 40th Army, which was trying to stop the advance of Guderian's 2nd Panzer Group to Moscow. After that, he was promoted to Lieutenant General. On October 22, 1941, he was awarded the Order of Lenin.
- (in Russian) Order of the People's Commissar of Defense of the USSR No. 2494 from November 25, 1935
- (in Russian) Order of the People's Commissar of Defense of the USSR No. 049 from 22 April 1939
- Memoirs of Marshal Bagramyan