Balaji Vishwanath's swears-in as Peshwa in front of Shahu. Bajirao tells Shahu that Chandrasen has killed his father. Shahu orders his soldiers to put Chandrasen in jail. Chandrasen's soldiers rush towards Balaji and hold their swords around his neck. Chandrasen angrily tells Shahu that he would come back to Satara along with Shiva.