Wellesley was determined to make the company a supreme power in India. He first erased the power of Tipu Sultan. Then he drew his attention to the marathas. He had the opportunity to interfere in the affairs of the Marathas. Jaswant Rag Holkar fought the Peshwa and Sindhia. He defeated Peshwa Baji Rao in a battle at Poona in October 1802. The Peshwa fled to Bassein, while the Holkar Vinayak Rao, grandson of Raghunath Rao, bet on the Gaddi of the Peshwa. Desperate, the Peshwa sought the Alliance of the English and signed the Treaty of Bassein on 31 December 1802. Thus, the English gradually succeeded against the Holkar. But it was at this point that the directors recalled Wellesley and sent Lord Cornwallis to India as governor general. The dismissal of Lord Wellesley saved the Holkars, Lord Cornwallis had come with specific instructions to make peace with the Marathas.
Peshwa Madhav Rao II was tired of Nana Fadnavis` control and committed suicide on October 25, 1795. First, Chimnaji and the next Baji Rao II were placed on or after the Peshwa Gaddi. Baji Rao was totally incapable of managing the affairs of an extensive empire like that of the marathas. Tukoji Holkar died almost at the same time, which caused a new setback to the Maratha affairs. Kashirao, the legal heir, but an idiot, was supported by Baji Rao and Daulat Rao Sindhia, while the cause of the three youngest, Malhar Rao, Vithoji and Jaswant Rao, was supported by Nana Fadnavis. .