Twelve Maratha chiefs, known as the Baarbhai [11] and led by Nana Phadnavis, directed an effort to install the infant as the new Peshwa and to rule in his name as regents.

Raghunathrao, unwilling to give up his position of power, sought help from the British at Bombay and signed the Treaty of Surat on 6 March 1775.

According to the treaty, Raghunathrao ceded the territories of Salsette and Bassein (Vasai) to the British, along with part of the revenues from Surat and Bharuch districts.

However, the alliance proposals reached nowhere, while the British suspicions of a global anti-British front increased, since the American War of Independence was also going up around this same period.

The Treaty of Purandhar (1 March 1776) annulled that of Surat, Raghunathrao was pensioned and his cause abandoned, but the revenues of Salsette and Bharuch districts were retained by the British.

In 1777, Nana Phadnavis violated his treaty with the Calcutta Council by granting the French a port on the West coast.

The Treaty of Purandhar (1 March 1776) annulled that of Surat, Raghunath Rao was pensioned and his cause abandoned, but the revenues of Salsette and Broach districts were retained by the British.

[9]: 56–58 Reinforcements from northern India, commanded by Colonel (later General) Thomas Wyndham Goddard, arrived too late to save the Bombay force.

Another Bengal detachment led by Captain Popham and assisted by the Rana of Gohad, captured Gwalior on 4 August 1780, before Mahadji Scindia could make preparations.

Initially, Mahadji had an upper hand and British forces under Camac, being harassed and reduced, had to retreat to Hadur.

Where Mahadji scored a significant victory over Camac at Sironj,[9]: 62  the British avenged the loss through the Battle of Durdah[21] on 24 March 1781.