Shahu was released by Mughal emperor Bhandur
Shah.
Tarabai’s army was defeated by Shahu in the battle of Khed (1700), and Shahu
occupied Satara.
But the Southern part of the Maratha Kingdom
with its capital Kolhapur continued to be under the control of the descendents
of Rajaram (Shivaji II and later Shambhaji II).
Shahu‘s reign saw the rise of Pesh was and
transformation of the Maratha kingdom into an empire based on the principle of
confederacy.