Shahu appoints Balaji Vishwanath as the Peshwa of his kingdom. Bappaji tells Balaji Vishwanath that he would not remain Peshwa for long. Bajirao finds a ring mark on one of Chandrasen's fingers. Bajirao tells Malhar Rao Holkar that Chandrasen has killed Dhanaji. Bajirao's family come to Shahu's court to attend Balaji Vishwanath's swearing in ceremony.