When the English were freed from the burthen and the dangers of the war with Scindia and the Rajah of Berar, they began to think of placing a curb on the power of Jeswunt Rao Holkar. Though Holkar had engaged, and upon very advantageous terms, to join with the other chieftains, he had abstained from co-operation in the war against the English; and though he had committed some ravages, on a part of the Nizam's territory, toward the beginning of the war; the Governor-General had not held it expedient to treat this offence as a reason for hostilities: Holkar, on the other hand, had been uniformly assured that the English were desirous of preserving with him the relations of peace.

In the month of December, 1803, Holkar, having marched towards the territory of the Rajah of Jyenagur, took up a position which threatened the security of this ally of the British state. At the same time, he addressed letters to the British Commander-in-Chief, containing assurances of his disposition to cultivate the friendship of the British government. But a letter of his to the Rajah of Macherry, suggesting to him inducements to withdraw from the British alliance, was communicated by that Rajah to the Commander-in-Chief; further correspondence of a hostile nature was discovered; and intelligence was received of his having murdered three British subjects in his service, on a false charge that one of them had corresponded with the Commander-in-Chief.