Ghaus Khan thanks Laxmi Bai for finding an appropriate spot for 'taziya'. Raghunath proclaims that Hindus and Muslims will always live together in peace. Rose overhears Nelson and Rao Dulhajo plotting against Laxmi Bai. Disguised as a pundit, Dulhajo trips over the idol of Goddess Saraswati that he had placed. The people celebrating 'Basant' festival take it as a good omen and rush to claim the land, creating a tiff between them and the Muslims. Rose informs Laxmi Bai about Nelson's conspiracy.