Gangadhar tells Mr Fraser that a new treaty for Jhansi's autonomy is needed. As Tatya Dixit lauds Manu's exploits and says she is fit to become Jhansi's queen without uttering her name, Gangadhar wrongly deems he is talking about Moti. On being told about some British officers' arrival, Shyam Rao stops a nautch, after which they lash him so that he reveals Manu's identity. In Bithur, the Peshwa invites the locals to a feast to mark Indu's coming marriage and flings precious items out of delight.