Trimbakrao, who had been keeping a watch on Gaekwad's army. Gaekwad was compelled to declare ceasefire and meet Balaji Rao to discuss the terms of a peace treaty. Balaji Rao demanded from him half of Gujarat's territories in addition to a war indemnity of 2,500,000. Damaji refused to sign an agreement, stating that he was only a subordinate, and asked Balaji Rao to consult Umabai. On 30 April, Balaji Rao launched a surprise evening attack, and Damaji's camp surrendered without resistance. Balaji Rao then surrounded the Satara fort, and asked Tarabai to release Chhatrapati Rajaram II, whose physical and mental condition had deteriorated considerably. Tarabai refused, and Balaji Rao left for Pune, since a siege of the well-provisioned and strong Satara fort would not be easy. Later, a section of Tarabai's troops in the Satara garrison rebelled against her. Although she crushed the mutiny, she realized that it would be difficult to continue the fight against Balaji Rao. She, therefore, agreed to a peace treaty. She met Balaji Rao in Pune, and accepted the superiority of the Peshwa's office. She agreed to dismiss her lieutenant Baburao Jadhav, whom the Peshwa disliked. In return, the Peshwa forgave her. On 14 September 1752, the two took oaths at Khandoba temple in Jejuri, promising mutual peace. At this oath ceremony, Tarabai swore that Rajaram II was not her grandson, but an impostor from the Gondhali caste. Nevertheless, the Peshwa retained Rajaram II as the titular Chhatrapati and a powerless figurehead. In May 1751, Balaji Rao had arrested Damaji Gaekwad and his relatives, and sent them to Pune. Sometime later, the Dabhades were also arrested, and deprived of their jagirs and titles. In Pune, Balaji Rao repeatedly pressurized Damaji to cede half of Gujarat on behalf of Yashwant Rao Dabhade. Damaji kept refusing, and on 19 July 1751, Balaji Rao placed him and his dewan Ramchandra Baswant in strict confinement. On 14 November, he sent them to captivity in Lohagad. A few weeks later, Ramchandra Baswant escaped to Gujarat. As a result, Balaji Rao ordered Damaji to be put in iron chains at Lohagad. He then sent a military expedition to Gujarat, under his brother Raghunath Rao. Raghunath Rao managed to recover revenues from Surat, but could not advance north of the Tapti river. Meanwhile, Balaji Rao received a setback when his general Shankarji Keshav Phadke was defeated at the siege of Parner. As