According to the terms of the treaty, the Nizam granted the Marathas the authority to collect Chauth, a type of tax, from the six Subahs located in the Deccan region.

The seeds of this battle date back to the year 1713 when Maratha king Shahu I appointed Balaji Vishwanath as his Peshwa, or Prime Minister.

Additionally, the Nizam decided to stop the payment of Chauth, which had been agreed upon by many landowners in the Deccan province to the Marathas, as per the arrangement made by the Syed Brothers in 1719.

[5] Following a skirmish near Jalna, where the Marathas continued their strategy of avoiding direct confrontation with the enemy, Baji Rao, as expected, withdrew from the battlefield and redirected his forces toward Burhanpur.

The shortage of food supplies, caused by the Marathas surrounding Nizam's camp, played a crucial role in his decision to sign a treaty with them.