Ahilya suspects that Raghunath Rao has come to Malwa for selfish reasons. Meanwhile, Raghunath Rao asks Malhar to support him in the power struggle against Madhav Rao. Malhar reveals that he has agreed to support Raghunath Rao in the power struggle of Pune. However, Ahilya doesn't agree with his decision. She accuses Raghunath Rao of conspiring against the Maratha empire and refuses to support Malhar if he accepts Raghunath Rao's offer.