Gautama blames Ahilya for the rift between Khanderao and Malhar Rao. Ahilya helps Khanderao in finding out the answer to the questions that Malhar Rao has put in front of him. Khanderao answers all the questions correctly and becomes the Uttaradhikari of Malwa. Malhar Rao finds out that Ahilya had helped Khanderao and praises her but this creates differences between him and Ahilya.
More