Shinde-Holkar Split & The Sangha Rajya: Maratha Decentralization (1740)

Marathi History Book Reading Session Summary

The Commander Problem: Shinde vs. Holkar

The Setup:

• Both commanders in north, managing different Rajasthan territories
• Competed for same resources & tax revenues
• Zero-sum game mentality: One's gain = other's loss
• Added personal egos & animosity on top

Why They Couldn't Cooperate:

• Both collected Chautai (1/4 taxes) from assigned zones
• Needed to pay armies from own revenue
• Competed for succession disputes in Rajput kingdoms
• Supported opposite sides of same families
• Vested interests "exactly opposite"
• Unmeditable by design

The Timeline:

• Started happening toward end of Bajirao I's life
• Bajirao was too busy/mobile to resolve
• Died 1740 before fixing it
• Problem inherited by successor

The Sangha Rajya: Federal Empire Model

What Emerged:

• Maratha Empire became Sangha Rajya (federation/union of kingdoms)
• Not centralized like Shivaji's
• Distributed command structure across territories

The American Parallel:

• Federal level: Peshwa in Pune (executive, warfare decisions)
• State level: Local commanders (territorial governance, revenue)
• When local issues = commanders decide
• When empire-wide threat = Peshwa mobilizes everything

Why This System Happened:

• Geographic distances too vast (north territories, south Deccan)
• Peshwa couldn't be everywhere like Bajirao was
• Communications took 1 month to reach north
• Commanders needed autonomy to act quickly

Shivaji vs. Bajirao: The Governance Trade-off

Shivaji's Model:

• Centralized authority
• Personal leadership everywhere
• Focus on good governance + conquest
• Exclusive Maratha army (no outsiders)

Bajirao's Model:

• Delegated authority to regional commanders
• Geographic distribution by necessity
• Focus on conquest over governance
• Inclusive army (Rajput contingents, local soldiers)

Why Inclusivity Became Necessary:

• Maratha soldiers didn't want to be far from homes for years
• Many were half-time farmers, needed to tend lands
• Could only recruit locally in far-flung areas
• Even later Peshwas hired Muslim & Arab soldiers on salary
• Never happened under Shivaji

Bajirao I's Financial Crisis

The Problem:

• Rapid expansion = needed money upfront
• Building governance infrastructure = time-consuming
• Bajirao was in hurry, couldn't wait
• Took on massive loans to fund campaigns

The Debt Trap:

• Loans carried over to next Peshwa
• Had to be repaid eventually
• Monetary side became "lopsided"
• Empire expanded territory but not wealth proportionally

The Irony:

• Military capability to conquer India
• But lacked financial capacity to fund it
• "If we had money, we could take everything"
• "But we don't have money"

Nana Sahib Peshwa: The Administrator (Third Peshwa)

Who He Was:

• Eldest son of Bajirao I
• Also called Baraji or Bajirao II (confusing naming)
• Appointed by Shahu after his father's death (1740)

His Character:

• NOT a warrior like his father
• Governance/administration man
• Good at planning, logistics, finance
• Based in Pune (unlike Bajirao who was constantly mobile)

His Achievements:

• Architect of modern Pune city
• Built temples on Parvati hill
• Set up museums
• Urban planning & development
• But: Had to fund ongoing wars while doing this

His Challenge:

• Inherited massive debts from father
• Wars happening everywhere (north, east, west)
• Had to fund them all from Pune
• Basically broke all the time

The TB Disease: Nana Sahib's Metaphor for Debt

The Problem:

• Nana Sahib called the debt problem "TB" (tuberculosis)
• Like a disease slowly weakening the body
• Gradually destroying empire from inside
• If not solved: slow death

Why This Metaphor:

• TB doesn't kill instantly
• Weakens gradually until system collapses
• Exactly like debt: Empire keeps functioning but getting weaker
• Eventually leads to total failure

The Solution:

• Had to pressure commanders for tributes & revenue
• Demanded more & more money
• Commanders had to extract more from their territories
• Created cycle of exploitation

The Root Cause Problem Identified

The Third Root Cause (Previously two identified):

1. Mastani precedent (wives follow armies)
2. Rajasthan alienation (lost natural allies)
3. NOW: The Debt/Funding Problem

What Marathas Couldn't Do:

• Generate sufficient tax revenue
• Build stable financial infrastructure
• Keep expansion funded without loans
• Pay armies sustainably

The Ambition-vs-Resources Gap:

• Military: Could conquer anything
• Financial: Couldn't sustain expansion
• Confidence: "We can take India"
• Reality: "We can't afford it"

Chimaji Appa: The Quick Exit

The Tragedy:

• Bajirao I died: 1740
• Chimaji Appa (brother) died: 1741 (within a year)
• Both pillars of military success gone
• Nana Sahib lost his uncle's support immediately

The Succession & Legitimacy Question

Why Nana Sahib Was Chosen:

• Shahu wanted to reward Bajirao I's loyalty
• Decided to make it hereditary (not explicitly said, but de facto)
• Peshwa position now stays in the family

After Shahu's Death (1749):

• Shahu had no heir to succeed him
• Or heir was ignored/not recognized
• No one to appoint new Peshwa
• So: Nana Sahib just continued (status quo remained)
• Peshwa position became "whole and sole"

Key Players

Timeline

Critical Insights

1. The Governance Problem

Rapid expansion without governance infrastructure = debt crisis. You need to build administrative capacity before you expand further.

2. The Delegation Trap (Extended)

Decentralized commanders work when Peshwa has money to delegate AND when commanders' interests are aligned. Neither was true now.

3. The Financial System Failure

Marathas had military genius but zero financial sophistication. Empire expanded in territory but not in wealth generation.

4. The TB Metaphor's Accuracy

Debt works exactly like disease—invisible from outside, but slowly eating away at strength. Marathas looking powerful while getting weaker.

5. The Legitimacy Question

After Shahu's death, no one questioned Nana Sahib's rule. Precedent + capability = acceptance. De facto dynastic rule established.

Key Quotes

"Marathas became more like a union of kingdoms with some freedom given to individual commanders"

"Peshwa in Pune couldn't send them money... do whatever it takes, maintain your army"

"They had to think about what's in their own interest... only worried about how to sustain themselves"

"The TB disease: gradually weakening until collapse if not solved"

Where We Left Off: Bajirao I's expansion has left the empire in debt. Nana Sahib inherits not just the empire, but the financial crisis. He's an administrator, not a warrior, so he stays in Pune trying to manage finances while commanders in the field do wars. Shahu dies in 1749, removing the last check on Peshwa power. But also removing clarity on succession. Nana Sahib just continues. The empire is now 100% dependent on Peshwa family ability to hold it together financially.

Bajirao I built an empire but didn't build the financial infrastructure to sustain it. Nana Sahib inherited the expansion and the debt. He tried to govern well, build Pune into a great city, and manage finances. But there was never enough money. The empire kept growing, expenses kept growing, and he kept borrowing. Meanwhile, commanders in the north were fighting each other over resources. And Shahu died with no clear heir, so Nana Sahib became the de facto ruler. Good administrator, but bad timing. He had all the responsibility and none of the money.