Laxmi Bai and her aides take over Kumaanganj's British base after a bloody fight and hold Lord Dalhousie hostage. Rana Bankura telegraphs key British centres in India and demands Jhansi's handover to Laxmi Bai and the opium trade's stoppage. Humiliated British authorities agree to hand over Jhansi to Laxmi Bai. Nelson informs Lord Canning, the new Governor General, that he has a plan to kill Lord Dalhousie. Rao Dulhajo reveals to Laxmi Bai that Lord Dalhousie had masterminded Gangadhar's murder.
