His activities were centred around the Mughal province of Hyderabad Subah, which he administered as deputy subahdar (governor) for most of his official career.
Jan Sipar Khan was subsequently made the first permanent governor of Hyderabad Subah, and served for twelve years before his death in 1700.
[8] In 1703, the Bedar chief Pidia Nayak occupied Kondaveedu Fort and plundered the coastal districts - the emperor Aurangzeb reduced Rustam Dil Khan's rank for his inaction.
Just over a year after Rustam Dil Khan's governorship began, a large Maratha force of 50,000 occupied the capital city of Hyderabad and freely plundered it for three days.
Rustam Dil Khan holed himself up in the Golconda fort and eventually got the attackers to withdraw, only by using funds illegally obtained from the imperial treasury.
[1] Reports of Rustam Dil Khan's performance caused emperor Aurangzeb to dismiss him from the deputy governorship by May 1703; he was demoted to faujdar of Sikakul, giving him control over the coastal districts of Hyderabad province.
[1] According to John F. Richards, such actions may have been to deter the possibility of dismissal from the province of Hyderabad, and to set up one of his own sons as the natural successor to the position.
Discovering that the treasury at Machilipatnam contained a great amount of wealth, Kam Bakhsh attempted to seize it to support his own precarious rule.
[12][3] After three days in confinement, Rustam Dil Khan was executed in September 1708 on Kam Bakhsh's order, by the trampling of an elephant.
[12][3][1] As the Mughal governor of Bidar, Rustam Dil Khan built a mosque in the city, within the tomb-shrine of Sufi saint Shah Ali Qadiri.
Though local records attest that Rustam Dil Khan's governorship was until 1688, the mosque's inscriptions date the structure to the year 1695, indicating he may have governed for a longer term.