Karma asks Laxmibai her true identity. She answers by saying that she is an Indian. Laxmibai decides to treat Karma and thinks of searching the treasure herself. Karma repents for his past behaviour and begs to Laxmibai to forgive him. Laxmibai and Samar somehow steal the treasure from Martin's men. Laxmibai sends the treasure to Gangadhar Rao along with a letter saying that the treasure was stolen by the British so that he does not get the administration of the eleven villages. Gangadhar Rao calls Martin to the palace and rebukes him for forcing him to pay for the treasure that was stolen by the enemies. Martin says that the treasure was stolen under his (Gangadhar's) jurisdiction. Gangadhar Rao announces that he is going to get the eleven villages for himself since he has the treasure in his possession. Martin is stunned when Gangadhar Rao soldiers bring the treasure before him.