Manson sees a British military effigy hung at the crossroad and asks Smith to untie the Briton. Sakharam tells the Peshwa that this is a revolutionary act. Manson accuses one of the locals of involvement in it and predicts a hellish British response. As a Briton whips a local, Kanta sees Manu's missing dagger and sends it to her through Kusum, a flower-seller's daughter. Gangadhar informs Moti that his relatives seek to harm him. Janki orders the astrologer to duplicate Manikarnika's horoscope.