Ahilya waves the flag to send the troops. Two soldiers come over to Malharrao and inform that the Portuguese have been successfully ousted from Tarapur fort by the strategy of Khanderao. He successfully planted the mines around the walls and inside where their weapons were destroyed.
Gautama is happy, Dwarkabai says it's illegal. Dhanaji also asks Malharrao if he's okay with this happening without his knowledge. Malharrao says we will meet in court and leaves.
Ahilya meets Khanderao and sees his hand injured, gets worried. They share some sweet moments but when he tries to get close she moves away telling she hasn't forgotten her promise yet.
Raj Vaidya treats Khanderao's wound and praises him. Gautama cries in happiness and pride. Ahilya says if he had told more people it would have been a bigger win.
In court everyone praises Khanderao and Malharrao hugs him. Dhanaji and Gunoji look in jealousy. Malharrao gives him the gifts recieved from Peshwa, a dagger and a kalgi for his pagdi.