After the death of Aurangzeb in 1707, the Mughals tried to divide the Marathas. In 1707, Zulfikar Khan, the Governor of the Deccan, set Shahu free and the latter claimed the Government of the country from Tara Bai. Shahu had been captured in 1689 and kept in Mughal custody along with his mother.

He was seven years of age at this time. He spent more than 18 years in captivity and got the training which could be available under the circumstances. Efforts were made to convert him but without much success.

When Shahu was released by the Mughals, there started a struggle between the two groups of the Marathas. Tara bai declared that Shahu was an impostor and he had no right to Kingdom which had been lost by his father Sambhaji.

The present state was created by her husband Raja Ram and Shivaji II was the lawful ruler. She sent an army under Dhanaji to check the advance of Shahu and a battle was fought at Khed in November, 1707.

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Tara Bai was defeated and she retired to Kolhapur with her son, Shivaji II. When Shivaji II died his step brother Sambhaji was put on the Gaddi of Kolhapur. Shahu was recognised as the Ruler of the Marathas on the Gaddi of Satara.

The relations between Shahu and Sambhaji were not cordial. The latter was determined to get back half of Maratha Territory for himself. Sambhaji went to the extent of hiring assassins to murder Shahu.

However, in 1731, the Treaty of Warna was signed between Shahu and Sambhaji. According to it, Shahu gave to Sambhaji the Warna Mahal and all the districts known as Dotarfa along with the forts and military outposts to the South of confluence of the Warna and the Krishna.

The Fort of Kopal was also given to Sambhaji in exchange for Ratnagiri. All the forts and military outposts from the confluence of the Warna and the Krishna to that of the Krishna and the Tungabhadra to the South were given to hirn.

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From the Tungabhadra to Rameshwaram, half the territory was given to Sambhaji. In the Konkon, all the districts from Salsi to Panch Mahal were given to Sambhaji. Both the parties agreed to destroy the enemies of each other and agreed to work together for the improvement of the Kingdom.

The Treaty of 1731 resolved the differences between Satara and Kolhapur and after that the relations between Shahu and Sambhaji remained cordial. Sambhaji paid many visits to Satara and he was very nicely treated by Shahu. Sambhaji died in 1760, 11 years after the death of Shahu.

According to G.S. Sardesai, Shahu was never a clever politician nor a capable commander.

However, his commonsense and sympathetic hears helped him to deflect those qualities in others and utilize them for the service of the state. He made the right selection of the right persons and gave them a free hand without grudge or hindrance. He advanced the interest of the riots, brought barren tracts under cultivation, encouraged the plantation of trees, relieved the sufferings of the poor and removed many burdens of taxes. He considered himself one with the people. He freely mixed with them and shared their joys and sorrows.

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On the occasions of festivals, celebrations, dinners, etc., he took an active part with outsiders. Both the rich and the poor invited him to their marriages and other celebrations. He is rightly called by many writers as Punya Schlock (of pious memory). He succeeded in achieving brilliant results through a mild persuasive policy dictated by rigid justice and good-will to all. He had a winning personality. Few notable figures in history approach his personality in the rule of the heart.

Shahu had a soft comer in his heart for everyone who approached him. There was no tinge of caste prejudice in his nature of policy. Although he did not personally lead distant expeditions; he kept a close watch over the actions of his subordinates to whom he had allotted separate spheres of influence. He called them to account for any wrong or misdeed committed by them, reprimanded them, punished them, rewarded them, composed their quarrels and adjusted their disputes by calling them to his presence at Satra for personal explanation, or settlement.

According to Dr. H. N. Sinha, “Thus expired one of the kindest of men, most generous of kings and most and fearing of the religious-minded persons. His weaknesses are glaring. He had neither the strength of will nor the caliber of the statesmen to control critical situations. He was good, affectionate, ease-loving and peaceful. But he possessed in plenty the rare gift of judging men and matters extremely accurately.

He hardly every erred in selecting his own men and in reposing confidence in them. His loving and frank disposition endeared him to all, and more than made up for his defect. He was loyally served and devotedly regarded by all. He loved his relatives, officers and people equally dearly, and his good intensions won the hearts of all. He was worshipped in his country and passed away mourned by all.

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“But his personality was a real force in the Maratha State. He was the symbol of its unity and though each member of the confederacy ruled more or less in virtual independence, yet all of them hand to obey the commands of the king. The obedience was not due to the actual authority that the king exercised as such, but partly to the individual who happened to be king at the time, that is to say, to the personality of Shahu, and partly to the tradition of the Hindus that the king, however worthless, should be regarded as an incarnation of God on earth.

Shahu’s authority was personal rather than official. By this time the real powers of the king had changed hands, and he had lost the real initiative in matters of high policy, real control in matters of actual administration and real power, where the safety and integrity of the state were concerned. The king was now the sinking sun, and the Peshwa was the rising moon orbed in his light.

So long, therefore, as the king Shahu lived, the Peshwa sincerely considered himself as his servant. That was due to Shahu’s personality. But after him ensued a period of turmoil and trouble, the reign of a weak and worthless youth, who spent his lifetime in prison, and the Peshwa stepped into the vacant office of kinship and became the head of affairs both in fact and in name. Thus Shahu in spite of weakness was the king of the Marathas, but his successor Ramraja sank into insignificance and allowed the Peshwas to be supreme in the state.”