In 1761, Nana escaped to Pune from the
Third Battle of Panipat and rose to great heights, becoming a leading personage directing the affairs of the
Maratha Confederacy, although he was never a soldier himself. This was a period of political instability as one Peshwa was rapidly succeeded by another, and there were many controversial transfers of power. Nana Phadnavis played a pivotal role in holding the Maratha Confederacy together in the midst of internal dissension and the growing power of the British
East India Company. Nana's administrative, diplomatic, and financial skills brought prosperity to the Maratha Empire and his management of external affairs kept the Maratha Empire away from the thrust of the British
East India Company. He displayed his best warfare skills in various battles won by Maratha forces against the
Nizam of Hyderabad,
Hyder Ali and
Tipu Sultan of
Mysore, and the English Army. However, Nana's policy of fighting the Mysoreans, forming a confederation against Tipu Sultan in the Third Anglo-Mysore War with Hyderabad and the British, weakened Tipu Sultan, whose advanced armies had at that point been the bulwark against British control. Furthermore, his policy of remaining neutral in the Fourth Anglo-Mysore War, between the British and Tipu Sultan, weakened support for the latter, paving the way for British dominance in the Indian subcontinent. On hearing of the death of Tipu, Nana remarked that the Marathas had only now realized that they were next, and there was "no escape from [this] destiny". After the assassination of Peshwa
Narayanrao in 1773, Nana Phadnavis managed the affairs of the state with the help of a twelve-member
regency council known as the Barabhai council. The council was Nana's mastermind plan to protect
Madhavrao II, son of Narayanrao, born posthumously to Gangabai, the widow of Narayanrao, from the Peshwa family's internal conflicts. The Barabhai Council was an alliance of influential Sardars (generals) led by Nana. Other members of the council were Haripant Phadke, Moroba Phadnis,
Sakaram Bapu Bokil, Trimbakraomama Pethe,
Mahadji Shinde,
Tukojirao Holkar, Phaltankar, Bhagwanrao Pratinidhi, Maloji Ghorpade, Sardar Raste, and Babuji Naik. During this time, the Maratha Empire was significant in size with a number of vassal states under a treaty of protection who recognized the Peshwa as the supreme power. While visiting
Daulat Rao Sindhia's camp one day in 1798, Nana was suddenly imprisoned, leading to unprecedented looting and anarchy in Pune. He was released a few months later. After a short illness, Nana died at Pune on 13 March 1800. Following his death, Peshwa
Baji Rao II placed himself in the hands of the British, provoking the
Second Anglo-Maratha War that began the breakup of the Maratha confederacy. ==Menavali palace==