The Mughal Empire's province Gujarat (now in India) was under attack of the Marathas since last half century. The chief Maratha houses, Gaikwar and Peshwa had made peace with each other and driven out the Mughal nobles under the emperor Alamgir II. One such noble, Momin Khan, had countered their advances and recovered Ahmedabad in 1756 lost to the Marathas few years ago. After a long siege, Ahmedabad fell again in hands of the Marathas. The Marathas levied tributes across Gujarat. In 1759, the English of the British East India Company captured Surat. Sadashiv Ramchandra was appointed as a viceroy by Peshwa in 1760 followed by Apa Ganesh in 1761. Following defeat of Marathas in the Third Battle of Panipat (1761), the nobles briefly recovered towns from the Marathas but soon had to surrender. Thus the Marathas firmly established themselves in Gujarat.
Gujarat under Alamgir II (1754–1759) At Delhi, during 1754, the emperor Ahmad Shah Bahadur was deposed, and Âzíz-ud-dín, son of Jahándár Sháh, was raised to the throne with the title of Alamgir II.
Maratha leader Bhagvantráv who was held captive was released and he established himself in the Cambay fort of Nápád and not long after began to attack Mughal noble Momín Khán's villages.
Contest with Momín Khán Renewed, 1754 After several doubtful engagements peace was concluded on Momín Khán paying Rupees 10,000 on account of the usual share of the Maráthás which he had withheld. This arrangement was made through the mediation of Tukáji, the steward of Sadáshiv Dámodar, who had come to Gujarát with an army and orders to help Bhagvantráv. As Momín Khán had no ready money Tukáji offered himself as security and Bhagvantráv and Tukáji withdrew to the Dakhan. Momín Khán's soldiery now clamoured for pay. As he was not in a position to meet their demands he sent a body of men against some villages to the west belonging to Limbdi and plundered them, dividing the booty among his troops. In the following year, 1755, Momín Khán went to Ghogha, a port which, though at one time subordinate to Cambay (Khambhat), had fallen into the hands of Sher Khán Bábi, and was now in the possession of the Peshwa's officers. Ghogha fell and leaving a garrison of 100 Arabs under Ibráhím Kúli Khán, Momín Khán returned to Cambay, levying tribute. He then sent the bulk of his army under the command of Muhammad Zamán Khán, son of Fidá-ud-dín Khán, and Varajlál his own steward, to plunder and collect money in Gohilwad and Kathiawad. Here they remained until their arrears were paid off, and then returned to Cambay. After this Momín Khán plundered several Petlad villages and finally, in concert with the Kolis of Dhowan, attacked Jambusar and carried off much booty. Momín Khán next marched against Borsad, and was on the point of taking the fort when Sayáji, son of Dámáji Gáikwár, who lived at Baroda, hearing of Momín Khán's success, came rapidly with a small body of men to the relief of the fort and surprised the besiegers. Momin Khan's troops soon recovered from the effects of the surprise, and Sayáji fearing to engage them with so small a force retired. On Sayáji's departure, Momín Khán raised the siege of Borsad and returned to Cambay.
Momín Khán recovers Áhmedábád, 1756
In 1756, the rains were very heavy, and the walls of Áhmedábád fell in many places. Momín Khán, hearing of this as well as of the discontent of the inhabitants, resolved to capture the city. He sent spies to ascertain the strength of the garrison and set about making allies of the chief men in the province and enlisting troops. About this time Rághoji, the Marátha deputy, was assassinated by a Rohilla. As soon as Momín Khán heard of Rághoji's death he sent his nephew, Muhammad Zamán Khán, with some men in advance, and afterwards himself at the close of the year, 1756, marched from Cambay and camped on the Vatrak River. From this camp they moved to Kaira (Kheda), and from Kaira to Áhmedábád. After one or two fights in the suburbs, the Momin Khan's troop, finding their way through the breaches in the walls, opened the gates and entered the town. The Kolis commenced plundering, and a hand-to-hand fight ensued, in which the Maráthás were worsted and were eventually expelled from the city. The Kolis attempted to plunder the Dutch factory, but met with a resistance, and when Shambhúrám, a Nágar Bráhman, one of Momín Khán's chief supporters, heard it he ordered the Kolis to cease attacking the factory and consoled the Dutch.
Jawán Mard Khán, who had previously surrendered Ahmedabad to the Marathas and retired, had been invited by the Maráthás to their assistance, set out from Patan, and when he arrived at Pethapur and Mánsa he heard of the capture of Áhmedábád. On reaching Kalol, he was joined by Harbhamrám, governor of Kadi. They resolved to send Zoráwar Khán Bábi to recall Sadáshiv Dámodar, and to await his arrival at Víramgám. Shevakrám, the Gáikwár's deputy, had taken refuge at Dholka. Momín Khán himself now advanced, and entering Áhmedábád on the 17 October 1756, appointed Shambhúrám his deputy. Sadáshiv Dámodar now joined Jawán Mard Khán at Viramgam, and at Jawán Mard Khán's advice it was resolved, before taking further steps, to write to the Peshwa for aid. Jawán Mard Khán, although he held large service estates, charged the Maráthás Rupees 1500 a day for his troops. Jawán Mard Khán and the Maráthás then advanced to Sanand and Jitalpur, and thence marched towards Cambay. On their way they were met, and, after several combats, defeated by a detachment of Momín Khán's army. Momín Khán sent troops to overrun Kadi, but Harbhamrám, the governor of Kadi, defeated the force, and captured their guns. When the emperor heard of the capture of Ghogha, he sent a sword as a present to Momín Khán; and when the news of the capture of Áhmedábád reached Agra, Momín Khán received many compliments. Bálájiráv Peshwa on the other hand was greatly enraged at these reverses. He at once sent off Sadáshiv Rámchandra to Gujarát as his deputy, and Dámáji and Khanderáv Gáikwár also accompanied him with their forces. Momín Khán refusing to give up Áhmedábád, prepared for defense. Sadáshiv Rámchandra, Dámáji and Khanderáv Gáikwár advanced, and, crossing the Mahi River, reached Kaira. Here they were met by Jawán Mard Khán and the rest of the Marátha forces in Gujarát, and the combined army advancing against the capital camped by the Kankaria Lake.
The Maráthás now regularly invested the city, but Momín Khán, aided by Shambhúrám, made a vigorous defence. Up to this time Jawán Mard Khán was receiving Rupees 1500 daily for the pay of his own and his brother's troops. Sadáshiv Rámchandra, considering the number of the troops too small for so large a payment, reduced the amount and retained the men in his own service. After a month's siege, Momín Khán's troops began to clamour for pay, but Shambhúrám, by collecting the sum of Rupees 1 lákh from the inhabitants of the town managed for the time to appease their demands. When they again became urgent for pay, Shambhúrám diverted their thoughts by a general sally from all the gates at night. On this occasion many men were slain on both sides, and many of the inhabitants deserted the town. The copper vessels of such of the townspeople as had fled were melted and coined into money and given to the soldiery. In this state of affairs an order arrived from the imperial court bestowing on Momín Khán a dress of honour and the title of Bahádur. Although the imperial power had for years been merely a name Momín Khán asked and obtained permission from the besiegers to leave the city and meet the bearers of the order. The Maráthás redoubled their efforts. Still though the besiegers were successful in intercepting supplies of grain the garrison fought gallantly in defense of the town.
At this juncture, in 1757, Rája Shivsingh of Ídar, son of the late Anandsingh, who was friendly to Momín Khán, sent Sajánsingh Hazári with a force to assist the besieged. On their way to Áhmedábád, Harbhamrám with a body of Maráthás attacked this detachment, while Momín Khán sent to their aid Muhammad Lál Rohilla and others, and a doubtful battle was fought. Shortly afterwards Sadáshiv Rámchandar made an attempt on the fort of Kálikot. The fort was successfully defended by Jamádár Núr Muhammad, and the Maráthás were repulsed. The Maráthás endeavoured in vain to persuade Shambhúrám to desert Momín Khán, and though the garrison were often endangered by the faithlessness of the Kolis and other causes, they remained staunch. Momín Khán, though frequently in difficulties owing to want of funds to pay his soldiery, continued to defend the town. The Maráthás next tried to seduce some of Momín Khán's officers, but in this they also failed, and in a sally Shambhúrám attacked the camp of Sadáshiv Rámchandar, and burning his tents all but captured the chief himself.
When the siege was at this stage, Hassan Kúli Khán Bahádur, viceroy of Oudh, relinquishing worldly affairs and dividing his property among his nephews, set out to perform a pilgrimage to Mecca. Before he started Shuja-ud-Daula, the Nawáb of Lucknow, requested him on his way to visit Bálájiráv, and endeavour to come to some settlement of Áhmedábád affairs. Accordingly, adopting the name of Sháh Núr, and assuming the dress of an ascetic, Hassan Kúli made his way to Poona, and appearing before the Peshwa offered to make peace at Áhmedábád. Sháh Núr with much difficulty persuaded the Peshwa to allow Momín Khán to retain Cambay and Ghogha without any Marátha share, and to grant him a lákh of rupees for the payment of his troops, on condition that he should surrender Áhmedábád. He obtained letters from the Peshwa addressed to Sadáshiv Rámchandra to this effect, and set out with them for Áhmedábád. When he arrived Sadáshiv Rámchandra was unwilling to accede to the terms, as the Áhmedábád garrison were reduced to great straits. Sháh Núr persuaded him at last to agree, provided Momín Khán would surrender without delay. Accordingly, Sháh Núr entered the city and endeavoured to persuade Momín Khán. Momín Khán demanded in addition a few Petlád villages, and to this the Maráthás refused their consent. Sháh Núr left in disgust. Before many days Momín Khán was forced to make overtures for peace. After discussions with Dámáji Gáikwár, it was agreed that Momín Khán should surrender the city, receive Rupees 1 lákh to pay his soldiery, and be allowed to retain Cambay as heretofore, that is to say that the Peshwa should, as formerly, enjoy half the revenues. In addition to this Momín Khán had to promise to pay the Maráthás a yearly tribute of Rupees 10,000 and to give up all claims on the town of Ghogha and hand over Shambhúrám to the Maráthás. It was also arranged that the Rupees 35,000 worth of ashrafis which he had taken through Jamádár Sálim should be deducted from the Rupees 1 lákh. Momín Khán surrendered the town on 27 February 1758.