The eldest son of Baji Rao, named, Balaji or popular as Nana Saheb and Balaji Baji Rao, was entrusted with the office of the Peshwa , after Baji Rao. Balaji Baji Rao was not exactly the shadow of his illustrious father. He indulged in plentitude of pleasures and a happy-go-lucky attitude. Still he held a candle to his father's innate dictatorship abilities.
Shahu, on the eve of his death in 1749, left a deed attesting the Peshwa as the guardian of the new Raja in the post-Shahu period. Shahu by this treaty was required to protect the high-esteem,the splendor and the elegance of the blue-blood of Shivaji, perpetuated by the descendants of Tara Bai. He should also recognize the independence of the state of Kolhapur and be aware of the existing rights of the Jagirdars. Together with these Jagirdars , he was supposed to exercise a concerted effort for aggrandizing Hindu authority and for the security of not only the Hindu temples, the peasants of the soil, and whatever was holy and useful.
The new Peshwa soon, found himself in dire straits being shaken by the united antipathy of Tara Bai and Damaji Gawaikwar, who threw the Raja into confinement, to abort the Peshwas rise to power. But the dexterous Peshwa quelled his harmful haters. The Raja could taste no power, whereas the Peshwa became the actual leader of the Maratha Confederacy.
Peshwa Balaji introduced changes in the structure of military-administration , that had prevailed almost as the same since the days of Shivaji. He imported Western warfare techniques through the non-Maratha mercenaries he recruited to upgrade the military skills.The army losing the uniqueness of a national character, got deprived of the essential discipline factor.
