After leaving Meerut enriched, Lal Singh travels to Delhi but quickly relocates to Bombay to avoid a potentially dangerous encounter with a disgruntled Rao from Rajputana. In Bombay, Lal Singh lives extravagantly, spending his considerable wealth on high living, including maintaining a servant, horses, and a coach.

While enjoying a ride in his coach, Lal Singh is surprised when he encounters Marendra Mukerji, a Babu he had previously outwitted in Meerut. Mukerji, undeterred by their past and showing a mix of cheek and charm, proposes a partnership. Despite Lal Singh's suspicions, Mukerji persuades him with a plan to exploit the wealth of the Parsee merchants of Bombay. He outlines a scheme where Lal Singh would contribute muscle and some financial backing while Mukerji would bring in intellectual strategy and a portion of the capital.

Mukerji’s plan appeals to Lal Singh's adventurous spirit and desire for wealth, leading him to cautiously agree to the partnership. The plan targets the affluent Parsee merchant community, promising high rewards.