Nana Saheb is welcomed at the court of Bithur as the new Peshwa. He expresses his gratitude to Laxmi Bai for making this possible. Laxmi Bai leaves Bithur amidst tears. To manage the unrest in Jhansi, Gangadhar calls Rao Dulhajo for his advice, but Sanjay Lohar's refusal to acknowledge Gangadhar as the king creates a worrisome situation. Nelson asks an angry Sanjay Lohar to create lawlessness which would give an excuse to the British to prove Gangadhar's incapability and take over Jhansi.