The Principal is naturally upset by the surprise demonstration of marksmanship. He scolds Atul and says that he can never call Divya's spirit back again. Atul says he doesn't care because he's done nothing wrong and isn't afraid of the scary ghosts anyway. At this point Nita steps up and "remembers" that Raj was able to mimic the sounds of the other friends' voices. This information might have been good to bring up when they still had mini-Divya around. The Principal decides that's all the "proof" he needs to declare the rest of the friends 100% innocent (well they are, but it still seems like a pretty weak case). Anyway, the others all beg the Principal (dammit, "TP" from now on) for some form of protection from these ghouls that want to kill them. TP heads to his cabinet and removes several gold medallions, one for each of the guys there. The gals are apparently not at risk, although Divya did say "We'll kill you all one by one." Seemed clear to me, but then again what do I know? He tells them as long as they wear the "lockets" they're all set.
Remember how Atul was all "There is no God" a little while ago? Well he's really offended by the idea of having to wear a religious symbol for protection and storms out. Nita, thinking only of her man's safety, takes the locket meant for Atul and goes after him to talk him into it. They begin arguing in the middle of the street, while Kapil looks on from the Jeep he's parked in a short distance away. Things actually get physical as Nita tries to put the locket around Atul's neck. They're pushing and pulling, oblivious to Kapil driving towards them. Finally Atul throws Nita to the gutter just as the Jeep hits him. Personally, this guy doesn't seem like one that needs a lot of saving. He's thrown a party after the deaths of three of his friends (a party at which yet a fourth friend died), fired a gun in a room with all of his remaining friends while a sympathetic "expert" was trying to help, and now has literally kicked Nita to the curb. Perhaps I'm being judgmental. /shrug
The Jeep contacts Atul dead center on the front of the Jeep. The vehicle splits down its axis as it passes around him, much to the surprise of both Atul and Kapil. Nita looks on from the ground, and is elated that Atul the Not As Big A Jerk As Ashok But Still Quite The Jerk escaped from harm. He looks down at his hand and sees the locked has been wrapped around it. Kapil sees the locket from the wreckage of the Jeep and gets a mean look in his eye. Atul realizes what happened and sees the light as Nita jumps up and gives him a big hug. Sorry Nita, I guess I just don't see the appeal.
In an odd scene change, we jump right from the hug in the street to Nita being at her place and Atul at his, talking to her on the phone. He says that he'll be right over. Okay! We see Nita hanging up the phone, and noticing that Kapil has just walked up to her in the yard. He puts her to sleep and lets her plop onto the patio. As he walks away, he takes on her form and goes out to meet Atul. Atul on the other end of the line is toweling off after a shower, and forgets his locket on a hook in his room. Seeing as how that thing just saved his life, this seems pretty careless.
Now, this next bit is another musical number ("Jaaneman Tu Khub Hai"), mostly taking place on the street. There's lots of lovey-kissyface stuff in this one, made all the more creepy by the fact that we know that's not really Nita, but Kapil. One dedicated killer to take things this far! As the song progresses they make their way up into the mountains, where Kapil makes his move. No not that move, the one to kill Atul. While singing seductively, Kapil/Nita walks backwards into space over the edge of the foggy cliff they're on, beckoning him to step out there with him/her.
Inexplicably, the real Nita has found where they are (up on the side of a mountain, no visible means of transportation or landmarks, etc). This girl is good. Authentic Nita stops Atul just before he steps out to his doom, whew thank goodness. They both stare in horror as the hovering Nita shape-shifts into a huge bird and flies off.
Yet another abrupt jump cut to a TV studio where a "Believe It or Not" style show is being broadcast, apparently live. The host is introducing a guest that claims to be able to change their shape at will. The young man changes into a woman, much to the amazement of everyone there. We see now that Nita and Atul (still with these two, weren't there about two dozen "main" characters in this?) are watching the show at home. Back to our program - the woman has transformed into a parrot. The host tells us that we'll reveal the true form of the guest right after these messages! They cut to what appears to be a real commercial, which plays uninterrupted for it's entirety. No subtle product placement here!
When we get back to the show, the parrot has disappeared. Atul gets fussy and starts asking what kind of crap show pulls this sort of stunt. The host on TV begins talking to Atul, walking closer to the camera as he goes. He comes out of the screen into their living room, and shifts into Kapil (surprised? No?). They immediately begin to kung-fu each other and smash up a lot of cardboard furniture.