Malerao misuses Ahilya's seal of approval and gives the Britishers a piece of land to conduct their business. Dwarka gets offended, as Gunoji is not invited to an important ritual. Malerao gets impressed by the singing skills of an orphan girl called Kesar, and he decides to reward her. Meanwhile, Ahilya confronts the Britishers at their camp and finds out that the agreement to the piece of land was given to them by Malerao. Ahilya feels betrayed when she finds out what Malerao did.