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In 1727 Nizam-ul-mulk opened his campaign against the Marathas. Bajirav, also made his preparations and with his forces surrounded him at Palkhed where a battle was fought in March 1728 and forced him to sign a treaty by which the Nizam agreed to acknowledge Sahu as the head of the Marathas, and as entitled to collect Cauth and Sardesmukhi in the Deccan. This treaty is a landmark in the history of the Nizams as the Marathas now obtained a full right to post their officers for the collection of Cauth and Sardesmukhi in the territory of the Nizam. Shortly after this campaign, the Nizam received an addition of strength by the desertion of the Maratha general Sultanji Nimbalkar to his side. The Nizam welcomed the arrival of Sultanji and gave him the district of Bid. a number of paraganas in the district of Fatehabad Dharur (now in Bid district) and the paragana of Pathri in Berar. It may be noted that during the Moghal period, the taluka of Bid formed a separate district. Major portion of the present district of Bid was under the Sarkar or district of Fatehabad Dharur. The district of Bid was estimated to yield an income of about 6,89,000 rupees, while the Sarkar of Dharur which consisted of 11 mahals or paraganas was estimated to yield an income of about 6,30,196 rupees. Sultanji Nimbalkar made Bid his headquarters. The family administered the district for a long time. Sultanji Nimbalkar died in the year 1748 A.D. In the same year Nizam-ul-mulk died and was succeeded by his son Nasirjung. The latter confirmed the fief of Sultanji on his son Hanmantrav who was given the title of Sultanji II. The family served in the Nizam's fights against the Marathas. After the murder of Nasirjung and Muzaffarjung, Salabatjung, the third son of Nizam-ul-mulk became the Nizam with the assistance of the French in 1751 A.D. It was during the time of Salabatjung that the Nizam lost the province of Khandes and the districts of Ahmadnagar, Sangamner. Nasik, Jalna, Solapur and Bijapur to the Marathas. In 1760 the Pesva Balaji Bajirav who had succeeded his father Bajirav in 1740 moved against the Nizam Salabatjung and his brother Nizam Ali Khan. While the Nizam was on his way from Ausa (Osmanabad district) to Dharur (Bid district) to join his forces with those of Hanmantrav Nimbalkar the Marathas attacked him and annihilated the rear guard of the Nizam's army at Tandulja on 3rd February 1760 A. D. This battle is known in the history as the battle of Udgir. It was as result of this battle that the Nizam lost the districts in Western Maharastra referred to above.The third battle of Panipat (1761) was a great disaster for the Marathas. The Pesva Balaji died shortly after and the Nizam was not show to take advantage of the difficulties of the young Pesva Madhavrav. He marched against Poona in the winter of 1761. In the following year he once more took advantage of the differences between the Pesva Madhavrav and his uncle Raghunathrav and marched against Madhavrav as an ally of Raghunathrav. As a result of this campaign the Nizam obtained practically all that he had lost at Udgir. However, even before the treaty had come into effect and territory exchanged the Marathas joined their forces and started a campaign against the Nizam. At this time Salabatjung, the Nizam had been deposed by his brother Nizam Ali Khan who had seized power. Nizam Ali Khan marched against Poona which he sacked in April 1763. The Marathas led by Madhavrav and Raghunathrav devastated the Nizam's territory to the very walls of the city of Hyderabad. Hearing of the sack of Poona they hurriedly marched back. The Nizam left Poona and aimed at camping at Bidar for the rainy season. He was however persuaded to move towards Aurangabad. On his way to that city Nizam Ali Khan arrrived at Raksasbhavan (in the district of Bid) on the banks of the river Godavari. The Marathas were closely following his movements. The Nizam with a part of his army had crossed the river Godavari while his divan Vitthal Sundar was still on the southern bank with a large force. The Marathas led by Madhavrav and Raghunathrav suddenly fell upon the Nizam's army in the memorable battle of Raksasbhavan fought on 10th August 1763. "While the Nizam's army led by his divan Vitthal Sundar Pratapvant was annihilated by the Marathas on the southern bank of the Godavari, Nizam Ali Khan had to remain as a helpless spectator of the carnage. The Nizam's divan Vitthal Sundar was killed in the battle while many of his generals were captured by the Marathas. Nizam Ali Khan fled to Aurangabad where he was closely invested by the Marathas. In the treaty which followed the Nizam surrendered to the Pesva territory that had been already secured at Udgir four years before, but which the self-seeking Raghunathrav had given back to the Nizam. The Marathas virtually forced the Nizam to appoint as his divan Ruknuddaulah who was friendly to the Marathas. Under' Ruknuddaullah's influence Nizam Ali Khan who had now, following the death of Salabatjung under suspicious circumstances, became the Nizam, co-operated with the Marathas in their campaign against the rising power of Hyder Ali of Mysore.Hanmantrav the son of Sultanjl Nimbalkar continued to hold the fief of Bid and a major portion of the Sarkar of Dharur (now in Bid district). He died in the year 1763, and his fief was conferred on his young son Dhanpatrav. It appears that Nizam Ali Khan was not satisfied with the behaviour of Dhanpatrav. The latter was slack in rendering services to Nizam Ali Khan in his various campaigns. In 1773 Nizam Ali Khan confiscated the fief of the NimbalKar family leaving a small estate for the maintenance of Dhanpatrav. The confiscated fief was conferred on Sarf-ul-mulk. the brother of Ruknuddaullah, the divan. In the Anglo-Maratha war which followed, the assassination of Narayanrav Pesva, the brother of Madhavrav, and the flight of Raghunathrav to the English, the Nizam maintained a neutral attitude. Later, in 1785, the Marathas and the Nizam united to march against Tipu Sultan of Mysore. In 1790 the British, the Marathas and the Nizam concluded a tripartite alliance and marched against Tipu. Tipu was defeated and as a result had to relinquish half of his dominion which was divided among the allies.
