On Shivaji’s death in 1680, his son Sambaji succeeded to the throne. During the last days of Shivaji, Sambaji had irritated his father and had even joined the Mughals. He had as also officers of Shivaji in 1689. Aurangzeb took him captive, gouged his eyes and had him executed. Sambaji’s brother Rajaram was crowned at Raigad, When the Mughals Seized Raigad. Rajaram escaped and took shelter at Jinji in the far south. When the Mughals captured Jinji Rajaram escaped to Raigad. When Rajaram died in 1700, his queen Tarabai crowned her son Shivaji and managed the affairs.
Aurangzeb was still campaigning in the Deccan. The commanders of Tarabai harassed the Mughal army in the Deccan, moving briskly and engaged them in guerilla war. In 1707, Aurangzeb died. His successors in Delhi released Shahu, the son of Sambaji whom the Mughals had held captive for long. The emperor sent Shahu to the South, granting him powers to collect certain revenue douse called Chauth and Sardeshmukhi from the six Subas in the South. Sahu started to rule as the Chatrapathi from Satara, whereas the successors of Rajaram carried on a rival government from Kolhapur.
Sahu entrusted administration to Balaji Viswanath, his trusted Peshwa. He collected Chauth and Sardeshmukhi efficiently and strengthened the position of the Chatrapathi at Satara.