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A British soldier informs Capt Hugh Rose that as per their plan reinforcements had arrived. At Tatya Tope's behest, Indian soldiers part of the Kanpur regiment prepare to revolt against the British. Laxmibai declares Karma was the traitor. Karma states that she would give his life but would never betray the queen of Jhansi. Ghaus Khan too is unable to believe that Karma would go against Laxmibai. Unable to bear the treachery, Laxmibai brutally whips Karma. Capt Hugh Rose sends message to his spy that reinforcements had arrived and to foil Laxmibai's plan, he himself was heading for Gwalior. Laxmibai receives the message and replies to Capt Hugh Rose that his plan would fail as she had learnt about it. Capt Hugh Rose learns about the soldiers of the Kanpur regiment preparing to revolt. Capt Hugh Rose decides to use the policy of divide-and-rule. Before leaving for the war, Damodar and Moropant perform a puja and wish Laxmibai good luck. Jhansi aristocrats are shocked when Laxmibai forbids them from accompanying her.
As soon as Karma gains consciousness he rushes towards the palace to stop Laxmibai. No sooner did Karma reach inside Laxmibai's chamber he notices that the traitor is none other than Laddi whom he had suspected earlier. He also finds her typing a message. Capt Hugh Rose receives a message from Laddi that Laxmibai was headed for a meeting on the border of Jhansi. Karma leaves the palace so that he could expose Laddi as the real traitor. Bandhu's daughter, Kali stops Laxmibai from continuing her journey. She and Laxmibai have a duel which Laxmibai wins. Laxmibai spares Kali's life and states that like other Indians, her father too believed that she had killed the missionaries. While Karma is on his way to stop Laxmibai, Laddi along with her comrades attack Karma. On hearing Karma's cry, Kali along with her aides rush to his aid. At the temple, Laxmibai addresses the prince and kings that they need to be vigilant and careful. Laxmibai learns about the treachery of her compatriots.