Shuja-Ud-Daula's men capture all members of the Holkar family and hold them hostage. However, Malhar defeats the enemy with Ahilya and Khanderao's help. Khanderao is furious and wants to attack Shuja-Ud-Daula's forces head-on, but Ahilya advises him against it. Meanwhile, Malhar receives some troubling news from Delhi. Guruji complains to Ahilya about Malerao's behaviour. While Ahilya is scolding Malerao, Khanderao comes to protect him, leading to an argument between Ahilya and Khanderao.