Iltutmish watches Mirza hug Razia. Iltutmish's royal sword is stolen. All the guests are suspects. An argument ensues between all of them. They doubt Mirza's loyalty. Iltutmish summons Mirza. Iltutmish declares him as the Subedar of Bhatinda as a reward for defeating Rukn-ud-din during the competition for Delhi Subedar. Iltutmish also agrees to Razia's marriage with Mirza. Iltutmish reveals that he had had the sword stolen to test the potential successors to the throne.