After the death of Baji Rao, Sahu appointed his 19 years old son, Balaji Baji Rao as Peshwa. Balaji Baji Rao was called by the name of Nana. Balaji Baji Rao had to face many problems just after becoming Peshwa. Maratha Sardar of Konkal, Tulaji angre was dissatisfied with Peshwa.

Raghoji Bhonsle of Nagpur wanted himself to be Peshwa. He was the husband of sister of Sahu’s wife. When he could not be Peshwa he became against new Peshwa. Nizam and his successors were not ready to fulfil their promises made with Baji Rao.

In Karnataka also Muslims began to challenge Maratha sovereignty, Rajput rulers were also dissatisfied with Marathas. Gayakwar of Gujarat was also unhappy with Peshwa, The internal dispute is also started among Peshwa and his generals-Sindhiya and Holkar. The financial condition of the Maratha Empire was also deplorable. But the big problem was of Sahu’s successor. Sahu had become very old, but he had no son till now. Thus, Balaji Baji Rao had to face many internal and external problems as he became Peshwa.

Solutions of Financial Problems-Balaji Baji Rao had to pay attention towards the deplorable financial condition of the state. The royal treasury had become empty due to expeditions of Baji Rao. Baji Rao himself left the loan of 14 lakhs rupees. Nana Saheb found the solution of it in Karnataka.

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He appointed his one officer Murarirao Ghorpade to take the money from Trichnapalli and Arkat. Then he took the loan from Mahadji Purandare and returned the money of Babuji Nayak. To improve his financial condition. Peshwa got the right of taking money from Sahu from all provinces along with Basin taken from Portuguese and whole country of Narmada south except Gujarat. Thus his financial condition was improved a lot and he tried to solve other problems.

Problem of Angre Brothers-In 1739 A.D., after the death of Shambhaji Angre, the struggle for succession started in Angre family. Peshwa favoured Manaji Angre against Tulaji Angre. But Tulaji proved himself more powerful than his enemies. At this Peshwa took naval help from the English and ended the power of Tulaji and established the sovereignty of Manaji. Manaji remained faithful towards Peshwa. For this, he had to give up full portion of Bankot to the English and Marathas navy power also ended by this.

Getting of Malwa-in 1738 A.D., according to treaty of Durai, Sarai Nizam, had given the provinces of Malwa to Baji Rao. But Mughal emperor did not confirm it till now. So Balaji entered in Malwa with a strong army and confiscated the bank of Narmada and Mandala. Being afraid of this, Mughal emperor gave province of Malwa to Peshwa in 1741 A.D. Peshwa promised to give 500 soldiers permanently to the emperor and send 4,000 soldiers, when needed. This was the direct involvement of Marathas in Mughals politics, the result of which was destructive.

Why Karnataka, Orissa, Bengal & Bihar were important for Balaji Baji Rao

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Karnataka:

Karnataka was a great attraction for Balaji Baji Rao. The reason was that Sahu had given the work of Karnataka to Maratha Sardar Raghuji Bhonsle who was rival of Balaji. Raghuji attacked on Karnataka in 1739 A.D. and got glorious successes. He defeated Nawab Dostali in Karnataka and killed him and imprisoned his son-in-law, Chanda Saheb, and brought him Satara. By this the prestige of Raghuji Bhonsle increased much. Balaji Baji Rao becomes eager to establish his sovereignty in Karnataka.

In 1743 A.D., Nizam-ul-Mulk attacked on Karnataka and cancelled all the successor of the Raghuji Bhonsle. At this, in 1715 A.D., Peshwa sent Sadashiv Rao Bhau for Karnataka expedition. Sadashiv Bhau was the cousin of Balaji Baji Rao and was a brave warrior and general. He made the whole west Karnataka under Chhatrapati. Thus, we see that Nana Saheb followed separate policy from his father. He wanted to control Karnataka like north.

Orissa, Bengal & Bihar

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Rahguji Bhonsle of Nagpur was a strong Sardar. In 1742 A.D., he increased his influence in Orissa and Bengal. His representative Bhaskarapant plundered many places in Bengal and defeated Nawab Alivardi Khan. Raghuji and Balaji Baji Rao were already rivals. When Bhaskar Pant started plundering in Bengal, Alivardi Khan requested Peshwa for help. Meanwhile, Mughal emperor also wrote Peshwa that he would prevent the activities of Raghuji in Bengal.

So Peshwa went towards Bengal with a strong army and he defeated Raghuji at many places. Raghuji kept the whole matter in front of Sahu. Sahuji talked with Peshwa and Raghuji made them friends and divided their fields. So Peshwa had to be away from Bengal.

After that, Bhaskar Pant was killed by which Raghuji became angry and he made many successful expeditions on Bengal, Bihar and Orissa between 1747 and 1751 A.D. In the end, Alivardi Khand and Raghuji had to make treaty. According to treaty, the area of Orissa was given to Marathas and Raghuji was to pay 12 lakh rupees and Chauth of Bengal and Bihar. By this treaty, the sovereignty of Marathas over Bengal, Bihar and Orissa increased.