On 19 February 1720, a Havildar had stopped a consignment of goods belonging to the British East India Company from passing through the village of Egmore and arrested the transporters.
When the news reach the Directors the next morning, a dubash and later, the Company's chief peon were dispatched to negotiate with the Havildar.
Hence, in April 1720, when the tidings of a secret correspondence between the Portuguese at Goa and the Chetties of Madras reached the ears of the Directors, Hastings proclaimed that the Chetties of Madras intended to desert the British and migrate en masse to the Portuguese colony of St. Thome.
The Company maintained a peaceful relationship with the Nawab of Carnatic as well as the Mughal Subedar of Deccan.
On 15 October 1721 Francis Hastings was replaced with Nathaniel Elwick as the President of Fort St George.