Gunoji and Dhanaji are discussing Rangrao and news he might have. Yamoonabai comes there and tells about Ahilya spending money on donations. Gunoji mocks her saying she should not be worried about it. She leaves. Dhanaji then explains that it is their main source of income apart from the salaries, and he should be worried about it.
Ahilya comes to talk to Malharrao.
Ahilya is sitting with Gangoba looking at the accounts, Gunoji comes and tells that the expenditure should be out of state funds not personal ones. She reasons that Malharrao and Baji Rao had close personal relation and it would make sense to spend from personal funds.
Malharrao overheard the conversation and feels proud and grateful to Ahilya for understanding his feelings.
Rakhuma talks to Tukoji about Gautama and Dwarka's fight and he could benefit out of it. He scolds her saying he would never do this. He is dedicated to the throne of Malwa and would only do what the throne wants him. He leaves.
Ahilya is talking to herself that she hasn't conveyed Gautama's message. She meets Gautama on her way in the kitchen. Gautama also teases her about Khanderao.
Rangrao tells Malharrao about an attack being planned on Khanderao's return journey by Nizam's soldiers.
Gautama asks Ahilya to talk to Malharrao about the Jaipur mission. She wants a chance for Khanderao.
Malharrao tells Gangoba about the impending danger. He plans a secret mission to help and rescue Khanderao soon.