At midnight, a thief sneaks into Tenali Rama’s house and steals Shardha’s gold necklace. Gundappa tries to catch a glimpse of the thief. While trying to escape the thief bumps into the Queen’s convey. Shardha approaches the Krishnadevaraya and asks for justice. Krishnadevaraya summons the Queen and asks her to revel the identiy of the thief.