Gangadhar is happy to have found his necklace. Tatya Dixit and Bopatkar talk about Manu's brave deeds, but Gangadhar tells them he will not marry a commoner's daughter. Manu sees her painting, while Tatya Dixit and Bopatkar try to convince Gangadhar to marry Manu. When the King of Kashi asks the Peshwa to give Manu's hand in marriage to Gangadhar, the Peshwa rejects the proposal saying that he dallys around with prostitutes. Gangadhar overhears this.
