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- Aurangzeb sent Mughal governor of Deccan, Shaista Khan against Shivaji whom he defeated.
- He attacked Surat, chief port of Mughals and plundered it.
- He was defeated by Raja Jai Singh of Amber which led to signing of Treaty of Purandhar in 1665.
- Was assisted by a council of ministers called Ashtapradhan including Peshwa (finance & general administration), Senapati (military commander), Amatya (accountant), Waqeanavis (intelligence).
- Reduced power of Deshmukh & Kulkarni and appointed his own revenue officials karkuns.
- Chauth was 1/4th of land revenue and Sardeshmukhi was additional levy of 10% on those lands of Maharashtra over which Marathas claimed hereditary right but formed part of Mughal empire.
- His army consisted of cavalry supervised by havildars and infantry having Malvi foot soldiers as an important feature. He also maintained a navy.
- Created a new post of Pratinidhi, thus taking the total number of ministers to nine.
- Released by Bahadur Shah (Mughal ruler). He defeated Tarabai in Battle of Khed (1700).
- His reign saw the rise of Peshwas and transformation of the Maratha kingdom into an empire based on principle of confederacy.
Balaji Vishwanath (1713-20 AD)
- Became first peshwa and made post hereditary.