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Gangadhar Rao is very upset by Laxmibai's absence. He announces that her dagger will represent her in the court. However, Moropant is sure that Gangadhar has met Laxmibai. Sakhubai is extremely pleased that Gangadhar Rao and Laxmibai are not together and cannot have an heir. She begins to conspire to kill Gangadhar. Laxmibai meets Samar Singh co-incidentally and is stirred on seeing his pitiable condition . Samar informs Laxmibai that some company officers are forcing villagers to grow opium. He also tells her about the increasing number of deaths in the village, due to the farming of opium. Laxmibai vows to teach the officers a lesson and motivates Samar to join hands with her. A villager named Karma announces that Gangadhar Rao is a traitor and their biggest enemy, because he gave away their villages to the British. Laxmibai is shocked . Other villagers agree with him.