Second Anglo- Maratha War (1803-1806) The second Maratha war was fought at the time of Lord Wellesley who wanted the Marathas to accept his Subsidiary Alliance system. The Marathas refused to accept it but were tricked by Wellesley due to their own internal differences. The Treaty of Bassein made conflict with the Marathas inevitable. The main provisions of the treated were the recognition of Peshwa's claim in Poona acceptance of Subsidiary Alliance by Baji Rao II and relinquishing of all rights of Surat by Baji Rao to the British.
For Marathas Treaty of Bassein was loss of national honor.Holkar and Scindia stopped fighting .Scindia and Bhonsle combined but Holkar and Gaikwad remained aloof.Scindia and Bhonsle were asked by the English to withdraw their troops to the north of the Narmada River but they refused and it led to war. Both Scindia and Peshwar had accepted the sovereignty of the English. British turned their attention towards Holkar but Yashwant Rao Holkar proved more than a match for the British. Wellesley was recalled from India and the Company made peace with the Holkar in January 1806 by the Treaty of Rajghat giving back to the latter the greater part of the territories.