I think Mahi is not dead. UV is not so dumb that he will land 'his' Twinkle in Jail to 'get' her. I'm sure this is his trap. He probably has abducted Mahi and will try to manipulate Kunj/Twinkle to do as he says in order to bring Twinkle out of Jail.
PS. I don't know if this idea is already shared. Sorry if it is, I didn't come across any so posted it.