After the death of Baji Rao, Nizam’s son, Nasir Jang revolted against his father. To suppress his revolt, Nizam had to request for help to Peshwa and for this help he paid 15 lakh rupee in cash to Peshwa. Besides this, he also ensured him to give 50 lakh rupees along with Malwa Province from the emperor. But when at the order of Sahu, Raghuji attacked on Karnatak, Nizam became again angry with Marathas because he considered Karnataka as his area.

In 1743 A.D., Nizam attacked on Karnataka and drove away Marathas from there. In 1748 A D., Nizam died. Before death he had advised his son nottable enemy of Marathas. But Nasirjang decided to finish the influence of Marathas with the help of Portuguese. After some days, local Pathans killed him and made Muzaffarjang, New Nizam.

In January 1751 A.D. he was also killed and Sobalatjang became New Nizam with the help of French general Bushi. During his reign Marathas attacked continuously on areas of Haidrabad and succeeded in establishing their sovereignty in Aisrgarh, Burhanpur, Daulatabad and its near provinces.

Relations with Rajputs:

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At the time of Peshwa Balaji Baji Rao, Swai Raja Jai Singh, king of Jaipur died. The struggle for succession started between his sons – Ishwar Singh and Madho Singh, Jagat Singh, Rana of Mewar, and kings of Bundi and Kota helped Madho Singh. At this Ishwar Singh punished Madho Singh and his friends with the help of Maratha Sardar Sindhia and Holkar. So Rajputs began to envoy with Marathas.

Ishwar Singh promised to give three lakh rupees to Marathas for their help. But the dispute started between Maratha Sardars. Sindhiya and Holkar, for the distribution of this money. Now Holkar joined Madho Singh. No Peshwa gave decision between Holkar and Sindhia. But taking advantage of internal dispute of Marathas. Ishwar Singh did not follow the conditions of treaty made with Marathas. At this Holkar helped Madhao Singh. In the end, Ishwar Singh did suicide.

Thus we see that Peshwa took part in the home war of Rajputs and also got success in it, but his success proved the great cause of failure of Maratha. Peshwa got defame by his both works to punish Rajput kings in favour of Ishwar Singh and to compel Ishwar Singh for suicide by helping Madho Singh. Rajput kings began to oppose Marathas.

Surajmal Jat-Surajmal Jat was the ruler of the Bharatpur. He helped Safdarjang against Mughal emperor. So Mughal emperor was angry with him. Besides this, Surajmal Jat wanted to expand his interests in regime of Agra. When Marathas got the right of collecting Sardeshmukhi from Agra and Ajmer, the tension between Marathas and Surajmal Jat increased. On the other hand, new Wajeer Gazi-ud-din encouraged Marathas against Surajmal Jat.

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Consequently in 1754 A.D., Madhovrao Holkar and Kaghunathrao besieged the famous Kumbher fort of Surajmal. In this war, Khanderao Holkar, the only son of Madhavrao was killed so Marathas are annoyed by this made harm to Jats and finally Surajmal had to promise to pay 30 lakh rupees to Marathas. But by this event, Surajmal Jat began to hate Marathas.

Death of Sahu & Problem of succession:

In 1749 A.D., Sahu died. After his death, there was a struggle for succession Peshwa wished that Shambhaji II would be the king to remove the dispute between states of Kolhapur and Satara. But Tarabai wanted to make the king her grandson Ramraja. Sahu also had decided to make Ramraja his successor during his life time.

Peshwa strongly opposed Rajaram but the cleverness of Tarabai made him failure and Ramraja was declared the successor of Sahu. The dispute between Peshwa and Tarabai began. After sometime, the dispute between Ramraja and Tarabai also started. Taking the advantage of this opportunity, Peshwa took the power of the state in his hands and began to run the government by making Puna the centre of the state. Thus, Balaji Baji Rao increased his power.

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North India :

The invasions of Ahmed Shah Abdali were happening on north India. In Punjab, his representative Nazib-ud-daula, was ruling. Marathas wanted to hoist their flag on Atak in North India after conquering North India. So in 1757 A.D. Maratha Sardar, Raghunathrao defected Nazib-ud-duala, the representative of Ahmed Shah Abdali and confiscate Sarhind and Lahore. Raghunathrao made Adina Beg Khan, the governor of Punjab and he returned.

Thus Maratha power was at its top. The frontier of their state was Indus River and Himalaya Mountain in north and southern coast of Peninsula in south. In this vast empire, the states which were not under him would pay him taxes.

Attack on Ahmed Shah Abdali-by this task of Marathas, Ahmed Shah Abdali attacked on India. Meanwhile, there spread anarchy in Punjab due to death of Adinabeg, the Governor of Punjab. Abdali confiscated Punjab and attacked on Marathas joining with Ruhels, Avadh Nawabs, Rajputs and Jats. In 1761 A.D. Marathas were badly defeated in the war of Panipat. Sadashiv Bhau was killed Mahadaji Shindhia was wounded. Being sad by this defeat, Balaji Baji Rao died in 1761 A.D.