This war started after the defeat of Peshwa Baji Rao II by Holkaar (one of Martha's clans) & Baji Rao’s acceptance of British protection by the treaty of Bassein in December 1802.

  

When the British captured Tipu sultan’s Mysore in 1799, Maratha’s were only left out of British Domination. At that time Maratha confederacy consisted of five major chiefs:

There were inside contretemps among them. In 1802 (Battle of Poona) Holkar’s chief Yashwant Rao, chief of Holkar’s at Indore defeated Peshwa & Scindias & Then the treaty of Bassein took place. It was the pact between Peshwa & British. It was the decisive step in the dissolution of the Maratha Empire.

In this treaty, Peshwa agreed to hand over a part of his territory to the British in return for help. The Peshwa won’t employ any European under his service without the consent of the British. This way he surrendered his policy to the British. Baji Rao accepted the subsidiary alliance imposed by Governor-general Lord Arthur Wellesley. Scindias and the Bhosles did not accept this treaty & which caused the second Anglo Martha war in central India in 1803.

This war proved to be disastrous for the Marathas as they lost their prominent territories. As a result of the war, a large part of Central India came under British Supremacy.

This Anglo-Maratha war was ended with the treaty of Rajat. British & holkars signed this treaty in 1805. Holkar’s also joined the battle against the British at a later stage.

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