Samar Singh tries to explain to Karma that Gangadhar Rao is not a traitor. But an agitated Karma interrupts him and vows to behead Gangadhar Rao within a year. Laxmibai gets furious and says that Gangadhar Rao is not an ordinary man. She asks the villagers to fight in unison against the British. The villagers are impressed by Laxmibai's words and pledge to oust the British from their country. Laxmibai and Samar Singh train the villagers to fight in the battlefield. Kranti Guru and the villagers attack the British in Araj. They defeat the British and free the villagers captured by them. Spears informs Gangadhar Rao about the incident. Gangadhar assures to investigate. But he and his ministers are pleased by Kranti Guru's action. A group of British soldiers surround Kranti Guru and are about to attack her.