The Treaty of Salbai was signed on May 17, 1782, by representatives of the Maratha Empire and the British East India Company after long negotiations to settle the outcome of the First Anglo-Maratha War. Under its terms, the Company retained control of Salsette and Broach and acquired guarantees that the Marathas would defeat Hyder Ali of Mysore and retake territories in the Carnatic. The Marathas also guaranteed that the French would be prohibited from establishing settlements on their territories. In return, the British agreed to pension off their protégé, Raghunath Rao, and acknowledge Madhavrao II as peshwa of the Maratha Empire. The British also recognised the territorial claims of the Mahadji Shinde west of the Jumna River and all the territories occupied by the British after the Treaty of Purandar were given back to the Marathas.
The Treaty of Salbai resulted in a period of relative peace between the Maratha Empire and the British East India Company until outbreak of the Second Anglo-Maratha War in 1802. David Anderson concluded the Treaty of Salbai on behalf of the East India Company.
" The treaty of salbai establish beyond dispute the dominance of the British as the controlling factor in Indian politics. Their subsequent rise in 1818 to the position of paramount power, being an inevitable result of the position gained by the treaty of salbai.' __ Cambridge History of India, Vol. V.
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