In March, 1728 CE at a place named Palkhed near Aurangabad, Peshwa defeated the army of Nizam and forced him to sign the treaty of Mungi Shivangaon. According to the provisions of this treaty.
1. Nizam shunned the responsibility of providing protection to Sambhaji and accepted to send him to Panhala.
2. It was decided to give up the annexed Maratha regions and to release the Maratha prisoners.
3. According to the treaty of 1719 CE, Shahu’s right of collecting Chauth and Sardeshmukhi tax was accepted.
