After the death of Janoji the house of Bholes was plunged into family feud worse than the one that was winessed at the death of Raghuji I. Prior to his death Janoji had secured the consent of the Pesva for regularising the adoption of Raghuji II, as he was himself without a son. But the actual adoption ceremony had not been gone through. Neither was the title of Sena Saheb Subha conferred on Raghuji II, officially. Exploiting these lapses Sbaji the younger brother of Mudhoji, approached Madhavrav Pesva for the grant of Sena-Saheb Subhaship. As Mudhoji was a partisan of Raghunathrav, Madhavrav sent the robes of Sena-Saheb Subhaship for sabaji with his agent Ramaji Ballal Gune. At the same time Daryabai, the widow of Janoji, joined Sabaji and declared that she was pregnant and would give birth to a posthumous child. This created an embarrassing situation for Mudhoji, the success of the parties of Nagpur thus depended upon the powerful personality in the family dissensions of the Pesva at Poona. Family disputes for power and position broke out in every Maratha confederate state. neither the Bhosles nor the Pesvas were an exception t o this state of affairs.

As a safety measure Mudhoji sent his family members into the fort of Chanda and collected a force of 25, 000 strong to face Sabaji. The armies of the two brothers met at Kumbhari near Akola in 1773. After a few engagement the two brothers decided to close the fight. It was agreed that Sena-Saheb-Subhaship should go to Raghuji II and actual administration should be looked after jointly by Mudhoji and Sabaji and Sabaji. The Prabhu brothers, Vyankat Kasi and Kaksman Kasi were deputed to Poona for securing the robes of Sena-Saheb-subhship for Raghuji. At this time Naryanrav was the ruling Pesva. This arrangement proved unsuccessful as Sabaji was dissatisfied with it. In the rivalry between Narayanrav and Raghunathrav, Sabaji took the side of the former while Mudhoji supported the latter. Sabaji sought the aid of the Pesva and the Nizam, and the combined forces laid siege to Ellicpur as its Navab was a partisan of Mudhoji. But in 1773, when Narayanrav Pesva was murdered Sabaji's party was considerably weakened and he openly supported the Barabhais. Mudhoji's cause was greatly strengthened when Raghunathrav assumed power murdering his nephew. A compromise was brought about between Mudhoji and Sabaji, which in its own way was destined to be short-lived. Which in its own way was destined to be short-lived. The Nizam, who had taken the side of Sabaji, drew upon himself the wrath of Raghunathrav. The Nizam was attacked and forced to enter into a treaty with Raghunathrav. With the Bhosles, the Nizam formed the treaty of Sixty-Forty.l

The family dispute between Mudhoji and Sabaji was finally set at rest when the latter was killed in the battle of Paneganv near Nagpur on 26th January 1775. In this battle Mudhoji was joined by the Gardi Muhammad Yusuf. One of the murdered of Narayanrav. The Paneganv battle gave Mudhoji a free hand in the political affairs of Nagpur. Dayabai and the other partisans of Sabaji quietly surrendered to Mudhoji.

For sometime in 1775, the Barabhais iinstigates Sivaji Bhosle of Amravati to rise aginst Mudhoji. They promised Sena-Saheb-Subhaship to Sivaji. This move was deemed necessary by them as their rival Raghunathrav had the support of Mudhoji Bhosle. On 6th March 1775, Raghunathrav entered into an alliance with the British at Surat in order to oppose the Barabhais. The rising of Sivaji Bhosle of Amaravati could not assume any serious proportion due to the timely mediation of Divakarpant.

The fratricidal wars among the Marathas were fully exploited by the English for the expansion of their power. In 1773, when the Poona court was faced with extraordinary situation following the assassination of Narayanrav, the British forces moved form Bombay took the fort of Thana. In fact the British had been casting their covetous eyes on the island of Sasti (Salsette), since long, for the safety of Bombay. The fort of Thana surrended on 28th December 1773. This was the actual beginning of the First Anglo-Maratha war which terminated in the Treaty of Salbye in 1782. Raghunathrav, in his quarrel with the Barabhats finally embraced the British giving them the long sought opportunity of interfering with the internal affairs of the Marathas. Raghunathrav became a British protégé by the treaty of Surat, 6th March 1775. With a view to curbing the growing ambition of the British and their aggression Nana Phadnis proposed an anti-British Confederacy consisting of the Pesva's Government, the Nizam, Haidar Ali and the Bhosles of Nagpur. At this time the prestige of the British had suffered a set-back in the eyes of the Indian powers due to the unscrupulous methods of Warren Hastings. This was rathier the opportune time for the Marathas to move against the British as they were engaged in a long war with the French. But the well-conceived quadruple alliance could nbot be worked out because of the machinations of Warren Hastings. Realising the danger of the alliance prosposed by Nana Phadnis Hastings restored Guntur to the Nizam and detached him from the Confederacy. His next move was the seduction of the Bhosles of Nagpur.

According to the plan of Nana phadnis, the Bhosles were to attack the English in Bengal, Haidar Ali to proceed against Madras and the Poona forces to hrass the British in Gujarat and Bombay. To execute a part of this joint Plan, a large force under Khandoji Bohsle popularly known as Cimanaji marched towards Orissa. Cimanaji was a man of courage and action and action. He was instructed to invade Bengal for the collection of cauthai which was in arrears. But at the eleventh hour he was prevented form stepping into Bengal by Raghuji II on the advice of his crafty minister Divakarpant Corghade. Hastings was able to purchase the loyalty of both Khandoji and Divakarpant by bribing them heavily. By the end of 1778 Goddard had secured Mudhoji's permission for the passage of his army through the latter's territory into Gujarat. Nana was enraged at this and immediately sent for Raghuji and Divakarpant and secured their support to his four-party alliance. But the two never kept their word.

Mudhoji Bhosle who was a sworn member of the Confederacy was the first to inform Hastings of Nana's plan. It was he who prevented Khandoji Bhosle from invading Bengal. Mudhoji, in all these activites had violated the Treaty of Kanakpur between Janoji and Madhavrav. It was presumed that he would observe the treaty to lwhich his elder brother Janoji was a party. But at the critical juncture he cast the previous bindings to the winds and went ahead recklessly allying himself with the British and their protégé Raghunathrav for selfish gains. The role played by Mudhoji, Raghunathrav and their supporters is indicative of the state of affairs prevailing among the ruling Maratha noblemen.

In 1785 Mudhoji had been to Poona with his army to help Nana Phadnis in the war against Tipu Sultan. The battle was fought at Badami-1786 in which the Nizam, the Bhosles and the Pesvas jointly defeated Tipu. Cimanabapu distinguished himself in this war. On his homeward journey Mudhoji paid a visit to the holy places in Maharastra and returned to Nagpur. Mudhoji died at Nagpur on 19th May 1788, after a very active political career of over two decades.

Towards the end of Janoji's career Divakarpant had fallen from his grace and was imprisoned. His property too was confiscated. Mudhoji who needed his help most released him. Divakarpant was soon restored to his former position and served Mudhoji as his principal counsellor. Mudhoji was never loyal either to the Barabhais or to Nana Phadnis. Throughout his career he supported Raghunathrav. At one time he was prepared to serve as the vassal of Warren Hastings severing his relations with the Pesva. Divakarpant had to tow the line of his master. But in doing so he could have impressed upon his master as to what was ultimately good for the Maratha nation as a whole. This naturally required a man of high moral character. It could not be expected of Divakarpant who was enjoying the confidence of Warren Hastings, to rise above self-interest. Divakarpant was bribed by Hastings in ordered to dissuade the Bhosles from the quadruple alliance of Nana Phadnis. Thus, the full-wise man out of the noted three and a half wise men of the Maratha country. Proved to be otherwise in the large national interests.