In 1798, imperialistic Lord Wellesly became the Governor General and came to India. In 1800 CE, after the death of Nana Fadnavis, differences emerged between Sindhiya and Holkar in Maratha court on the issue of establishment of dominance. At this time Sindhiya remained successful in establishing his control over Peshwa Bajirao II.

In October 1802, Holkar defeated the joint army of Peshwa and Sindhiya and Vinayak Rao was made the Peshwa. In order to regain the post of Peshwa, Bajirao went in the haven of the British, due to which the British again get on opportinity to interfere in the politics of the Marathas.

Reasons of War: 

(1) Peshwa had remained unable in solving the disputes of his own Maratha chieftains. When a struggle took place between Holkar and Sindhiya, Bajirao II went in the haven of the British.

(2) There was competition between Holkar and Sindhiya on the issue of establishing · dominacne in the politics of Marathas and the British get advantage of this dispute.

(3) In 1800 CE after the death of Nana Fadanavis, there was no leader who would unite the Marathas. As a result, dispute between the Maratha chieftains continuously increased which resulted in war.

(4) In 1798, Lord Wellesley came to India after becoming the Governor General with the major objective of expansion of the British empire in India. With the objective of invading the Marathas, the British signed the treaty of Bassein with the deprived Peshwa. The above given reasons created the condition of war between the Britsh and the Maratha by which Maratha Empire continuously became weak.