She remained under house arrest in the jungles of Burma until March 1946, when she was sent to India.
Captain Lakshmi married Col. Prem Kumar Sahgal in 1947 after which they moved to Kanpur from Lahore. In Kanpur, Lakshmi plunged into her medical practice, working among the flood of refugees who had come from Pakistan, and earning the trust and gratitude of both Hindus and Muslims.
Lakshmi worked at a camp in Bongaon for several months, in 1971, when huge numbers of refugees came from East Pakistan into West Bengal. Her compassion and service to the poor have become legendary in the city.