Kumud is facing much problems ever since she decided to know about Ghuman’s past. Kumud was dying to know the secret which she felt might be fruitful for her. Nevertheless, she got caught in Chandni Bazaar in Sunanda’s evil clutches. Saras tried hard to free her. He even arranged one crore to get her, but luck did not support the lovers. Kumud was taken away by Jugnu. Jugnu is in love with Kumud and paid fifty lakhs to Sunanda for her.
Kumud was going to be made Umrao Jaan by Sunanda who was keen to make her take Ghuman’s place. Kumud denied to wear the clothes offered by Sunanda for her dance show and told her that she would prefer dying rather than giving up and agreeing to her dirty demands. Kumud meets another dancer – named Kusum and she reminds her of Kumud’s sister Kusum. Kumud emotionally connects with her and gets her help to escape from Sunanda’s clutches.
Kumud wanted to know the secret of Ghuman and Menka so she went to Chandni Bazaar, the hub of all the Kothas. Kumud meets Sunanda there who was once Ghuman’s friend and now her enemy. Sunanda at first acts sweet to Kumud and then shows her real face. She locks Kumud in a room telling her that she does not let people go who she likes. She plans to make Kumud a dancer like her and make her sing and dance to woo men at her Kotha.