The Second Anglo-Maratha War was fought when Lord Wellesley was the Governor General of India. In 1803 Baji Rao II signed with the English East India Company a Subsidiary Alliance known as Treaty of Bassein. As a result the English installed Baji Rao II at Pune and helped to drive out the Holkars. The Maratha chiefs Scindia and Bhonsle refused to accept the system of Subsidiary Alliance and declared war against the British. But the British defeated the combined forces of Scindia and Bhonsle. They were forced to enter into the Subsidiary Alliance with the English. They ceded the territories of Ahmednagar, Broach, Cuttack and Balasore. This war gave a **** to the power and prestige of the Marathas.
