Tatya Tope and Raghunath send Nelson on a wild goose chase. Laxmi Bai, who is disguised as Rana Bankura, and Karma, under the alias of a moneylender, fight for the treasury. An unveiled Laxmi Bai points out Rana Bankura's sacrifices for her land's freedom. When Karma sheds his disguise, she accuses Captain Bheem of treachery. He reveals how he became Captain Bheem to use Jhansi's treasury to fund India's freedom struggle and talks of British sepoy Mangal Pandey's secret patriotic leadership.