The Marathas instilled Sha Alam-II back on the throne of Mughal Empire in Delhi. Sha Alam-II was under the care British after the defeat in Buxar war. Now, the Emperor gave Kora and Allahabad to Marathas, which he had earlier given them to the British. This resulted in the enmity between Marathas and the British. During this period, the death of Maratha strong man Madhav Rao Peshwa was a major setback to Marathas. Though, his brother Narayanrao came to power, he was murdered by his uncle Raghobha (Ragunatha Rao). This resulted in the infighting for the Peshwa post. The Maratha federation brought MadhavRao II of NarayanaRao to the post of Peshwa. Upset with this development, Raghobha approached the British for support. The British thought of exploiting this situation in their favour. Initially, though Marathas gained upper hand, later they had to lose Allahabad to the British. The Maratha federation unable to sustain the war with the British finally entered ‘Salbai Agreement’ and ended the war.
