Battle of Rakshasbhuvan

As Nizam Ali made his way towards Aurangabad, the Peshwa's army followed closely behind. However, Nizam Ali crossed the Godavari River with a portion of his forces, leaving Vithal Sundar in charge of the remaining troops and all the artillery and baggage on the south bank. Rakshasbhuvan was situated on this side of the river. Raghunath Rao, sensing an opportunity, decided to prevent Vithal Sundar from crossing. Meanwhile, Janoji Bhonsle left Vithal Sundar's side under the pretext of not being paid his troops. Raghunath Rao quickly marched to attack Vithal Sundar at Ralshasbhuvan. The ensuing battle, known as the Battle of Ralshasbhuvan, was a decisive victory for Madhav rao's forces. Vithal Sundar was severely wounded and killed in the battle, along with another prominent commander Vinayak das on Nizam Ali's side. Another prominent commander Murad khan captured by the marathas and sent to Asaf jah to cede territories worth crores and some forts.This battle marked a significant setback for Nizam Ali's army as they lost a large number of troops and valuable resources.^[6][1]

A truce was reached and a treaty was signed at Aurangabad, whereby the Nizam lost 50 lacs territory including Bhalki and except Telangana and the eastern part of the Godavari river in Maharashtra. They gained the Bidar and Naldurg forts in exchange for Bhalki.^{[5][page needed]}