Muhammad Quli had to face a few internal problems also. Venkata II, king of Vijayanagar, with his headquarters at Penukonda was anxious to recover some of his paternal domains and, therefore, laid siege to Kondavidu.
Quli not only inflicted a crushing defeat on him but also advanced further and occupied Gooty Karnal and Gandicota. He even laid siege to Venkata’s capital Penukonda.
The Raya felt nervous and asked for 3 days time preparatory to an agreement. Quli generously agreed to his request.
Venkata made full use of this time to fortify himself with provisions and made the necessary preparations.
Quli thought it advisable to withdraw in view of the likely inundation of the Krishna due to approach of monsoons which would cut off his line of communications. Quli had to recognize Krishna as the boundary between the two kingdoms.