When Laxmibai asks Karma the reason for killing the man, Karma lies that the man was an informer of the British. On searching, a bag of gold coins is indeed found in the man's pocket. One of the group members decides to kill Karma. But Karma begs to her to save his life. She forgives him at Samar Singh's behest. Gangadhar Rao asks Raghunath Singh for a detailed report. Laxmibai tells Samar Singh that she is feeling bad about putting Gangadhar Rao in trouble after stealing the treasure. Laxmibai decides to send a peace proposal to Gangadhar Rao. Meanwhile, Gangadhar Rao sends a similar peace proposal to the revolutionaries that if they return the treasure, he will take the 11 villages back from the British and declare them tax free forever. A villager of Jhansi informs Spears and Martin about Gangadhar's peace proposal. Martin feels happy assuming that Gangadhar has walked into their trap.
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