The Nizam was beaten, shut up in Kharda fort and forced to cede territory and pay an indemnity.
01One army again
Disputes over chauth arrears had soured relations with Hyderabad, and the Nizam’s minister Mushir-ul-Mulk spoke openly of humbling Pune. Nana Phadnavis gathered the whole confederacy: Scindia’s trained brigades, Holkar, the Bhonsle of Nagpur, the Patwardhans and the Peshwa’s own troops. The armies met near Kharda in March 1795. The Nizam’s line gave way after a short fight, and he took refuge in the small fort, where the Marathas surrounded him.
02The terms
Cut off from water, the Nizam gave in. He ceded lands including Daulatabad district, agreed to pay the arrears and handed over Mushir-ul-Mulk. Within months the young Peshwa Sawai Madhavrao died after a fall at Shaniwarwada, Nana died in 1800, and the confederacy that had won at Kharda fell apart.

Kharda was the high-water mark of the Maratha confederacy’s unity, just before it broke apart.

