To repay her debt of gratitude to Vasudha, Laxmi Bai adopts Anand Rao. Nelson arrives at the court disguised as Sage Sudarshan and gives a box with a fake snake, which camouflages a real snake. He gives it for Damodar's protection and asks for it to be placed by the side of his cot. At night, Nelson has someone play the snake-charmer's instrument, which disturbs Anand Rao. Laxmi Bai and Gangadhar try to pacify him. The snake from the box gets activated and bites Damodar.