Episode 3 of *The Ba***ds of Bollywood* opens with Sanya lost in thought, wondering whether Aasmaan had divulged the details of his contract with Freddy to Karan. Aasmaan, gripped by fear of being ousted from the film, opts to attend the intimacy workshop in Goa for the time being. He vows to break the news about the contract to Karan upon his return from the workshop.
However, before Aasmaan can fulfill his promise, Karan takes to the media to proclaim Aasmaan and Karishma as the fresh faces of his upcoming film. In Goa, Aasmaan introduces Parvaiz to Karishma as they embark on a quest to find the intimacy coordinator. Meanwhile, Karan receives a call from what appears to be Karishma's number, but it's actually the struggling actor Jaraj Saxena, pleading with the filmmaker for another shot at stardom.
Karan abruptly ends the call, his temper flaring, just as the real Karishma rings him to inquire about the intimacy coach. He grills Aasmaan on whether the exclusive deal with Freddy has been finalized, and the actor, eager to dodge the question, lies to appease Karan.
Parallelly, Avtaar grapples with the overwhelming negative feedback from those around him. His path crosses with Jaraj's, who recognizes him from a success party. Avtaar then stumbles upon a group of boys dancing to a remixed version of his latest song, his anger flaring at what he perceives as theft. Jaraj intervenes, saving Avtaar from a potential altercation, and the two strike up a friendship. Jaraj recounts his 15-year struggle to make it big in the industry, a tale that reignites Avtaar's determination to give his comeback another shot.
Meanwhile, actor Emran Hashmi, Parvaiz's idol, unexpectedly steps in as the substitute intimacy coach. Their interaction spawns a series of comical moments. Emran imparts the mirror technique to Aasmaan and Karishma, aiming to enhance their on-screen chemistry. Avtaar, on the other hand, confronts Sanya about her roommate, DJ Adam.
Despite their initial clash, Avtaar and Adam decide to join forces, blending traditional Punjabi music from Avtaar's repertoire with Adam's contemporary flair. Back at the workshop, Emran and Parvaiz struggle to bridge the gap between Aasmaan and Karishma. Emran adopts the role of the strict mentor, reprimanding Karishma for her lackadaisical approach to her role, given her privileged background.
Aasmaan leaps to her defense, offering comfort. Karishma confides in Aasmaan about her struggles living in the shadow of a renowned celebrity. Aasmaan, in turn, shares his own story, revealing how his mother had once aspired to be an actress but chose marriage after becoming pregnant with him.
The pair were on the verge of sharing a tender kiss when Emran abruptly intervened. He offered his heartfelt congratulations to the duo on their film and, with a hint of remorse, apologized for his earlier harshness. With a parting nod, he bid them adieu. However, Parvaiz, overcome with emotion, lauded Emran's illustrious contributions to Bollywood. Meanwhile, Sanya confided in Aasmaan, revealing her helplessness in extricating him from the binding contract with Freddy.
Karishma, seizing the moment, phoned Karan to apprise him of the contract situation, urging him to keep a close eye on Freddy. She relayed this information to Aasmaan, but his response was tainted with resentment. Amidst this tension, Karishma found herself in a dire situation, choking on a fishbone. Aasmaan, displaying remarkable presence of mind, performed the Heimlich maneuver to dislodge the obstruction. Unbeknownst to them, paparazzi lurking nearby captured the incident on video and promptly released it to the media.
The press, sensationalizing the event, mislabeled the life-saving act as “dry humping,” imbuing it with a sexual connotation. Ajay, Anu, and Shaumik were enjoying a dinner with Sameer and his family when the news broke. Sameer’s parents, outraged by the scandal, demanded that Ajay leave their presence. Upon returning to Mumbai, Aasmaan encountered Karan, who chastised him for expecting Karishma to resolve his predicaments and urged him to take responsibility for his own actions.
Ajay and Anu, still reeling from the incident, directed their ire at Karishma. She vehemently defended herself, explaining that she had been on the brink of death and that Aasmaan had saved her life. Neeta, too, was livid with Aasmaan about the video and did not hold back in her reprimand. Simultaneously, Parvaiz, in a desperate bid to free Aasmaan from his contractual shackles, enlisted the help of local thugs. They ambushed Freddy during a massage session, administering a beating and coercing him into signing the papers to release Aasmaan from the exclusive three-film deal.
The following day, a chastened Freddy approached Ajay to apologize for the ordeal. Ajay, however, stood firm in his decision to sever ties with Freddy’s production company. Freddy, in a last-ditch effort to salvage his business, pleaded with Ajay for assistance, but the actor remained unyielding, bringing the episode to a dramatic close.
