Though a subsidiary treaty was signed with the English East India Company in June 1817, the Peshwa did not remain idle. He burnt the British Residency of Poona in November 1817 and attacked a British camp at Kirki.
When the reinforcements came, Baji Rao II lost hope; however he tried to continue his struggle until he was captured in June 1818 by Sir John Malcolm the Commander-in-Chief. The revolt of Baji Rao II acted as a signal to the other Maratha groups. Battles were fought at Nagpur and Mahidpur in December 1817.
The Marathas were not slow to accept the political consequences of their military defeats. Holkar did not resist the British after the battle at Mahidpur. By the Treaty of Mandasor in January 1818, he renounced his claims on the Rajput states and also agreed to maintain a subsidiary force of the British in his state the channel of communication of the Holkar with any power, native or foreign, was permitted as the cases of others, only through the British Resident.
Lord Hastings, the Governor-General of India from 1813-23 was keen on destroying the Maratha spirit of resistance and nationalism. No further opportunity was given to them to rally round their traditional nationalism. The Peshwa Baji Rao II was granted a pension of 8 lakhs a year. A puppet Peshwa, Pratap Singh, descendant of Shivaji, was established at Satara in an attempt to appease the older families of Maratha royal blood.
The remaining territories of the Marathas were consolidated and annexed to the British India Presidency of Bombay (now Mumbai). Thus the English East India Company eventually triumphed over its only rival in the opening of the 19th century-the Marathas-and established the British paramountcy by 1818.
The year marked the end of the transfer of hegemony of India from the Marathas to the East India Company. It seemed that the British triumph was complete in the whole of India. Wellesley’s subsidiary troops were encamped at the capitals of all great Indian powers, at Mysore, Hyderabad, Lucknow, Poona, Travancore, Cochin and most other princely states.