accompanied by his trusted lieutenants, Malharrao Holkar, Ranoji Shinde (Scindia) and Udaji Rao Pawar, swept through Malwa. A few years earlier the Mughal Emperor had been forced to give the Marathas the right to collect chauth taxes in Malwa and Gujarat. This levy added much value to the Marathas, as both the king Shahu and his Peshwa, Bajirao, were ear-deep in debt. The revenues they collected from their own lands were not sufficient to run the administration of the state and finance their large military expenditure. The Marathas lived by the sword and trade was alien to them. Agriculture in the Deccan depended heavily on the timeliness and sufficiency of the monsoons. The most important source of money were therefore the chauth (a 25% tax on produce) and sardeshmukhi (a ten percent surcharge) exacted by the Marathas. The Maratha armies defeated the Mughal governor and attacked the capital Ujjain. Bajirao established military outposts in the country as far north as Bundelkhand.
Towards the close of the 18th and in the early part of the 19th century, the state was subject to a series of spoliations by Scindia of Gwalior and Holkar of Indore, (descendants of Ranoji Scindia and Malharao Holkar). It was only preserved from annihilation by the talents and courage of the adoptive mother of the fifth raja.
British rule
After the Third Anglo-Maratha War, of 1818, Dhar passed under British rule. Dhar became a princely state of British India, in the Bhopawar Agency of the Central India Agency. It included many Rajput and Bhil feudatories, and had an area of 1,775 square miles (4,600 km). The state was confiscated by the British in the Revolt of 1857, but in 1860 was restored to Raja Anand Rao III Pawar, then a minor, with the exception of the detached district of Bairusia, which was granted to the Begum of Bhopal. Anand Rao, who received the personal title Maharaja and the KCSI in
