Gangadhar Rao returns the treasure to Martin, but he insists on seeing the treasure first. When Martin gets the chests opened, he finds only rocks instead of the treasure. Martin is furious and accuses Gangadhar of cheating the East India Company. He also says that Gangadhar is not fit to sit on the throne. Gangadhar Rao tells Martin that it could be a conspiracy against him. Martin apologises to Gangadhar but also announces that he has to receive the treasure within 24 hours. It is revealed that Karma had stolen the treasure. Moropant arrives at Laxmibai's camp to meet her. When he asks her to come back to Jhansi, she tells him she will return only when Gangadhar Rao gets the 11 villages. Moropant reveals to her that the treasure has been stolen. Laxmibai is shocked, but she is sure that Karma is behind the theft. Karma goes to meet Martin and tries to strike a deal. Karma offers to give good news to Martin if he makes him the `Subedar' of the 11 villages.