1796 orders were issued from Bombay to collect tax arrears for 2 years in Kottayam. For the Company administration, no more pretexts were needed to arrest Raja. 300 men under Lieutenant James Gordon marched from Talassery and seized Raja's fortified house at Pazhassi-but Raja fled four days earlier to Manattana (near Kottiyur). Gordon sacked the palace where traditional treasure of Raja was kept. Raja was angry at Gordon's actions and sent a letter to the Supervisor at Thalassery. Raja was also angry that one of his former generals, named Pazhayamviden Chandu, had become an agent of Kurumbranad Raja and what angered him even more was that this turncoat had the audacity to boss him with Vira Varma's and EIC blessings. Raja shifted his HQ to Purali Range and then into Wayanad. Raja then blocked all Company communications between Wayanad and Low Malabar through Kuttiyadi Pass. The EIC retaliated by cutting all communications between Raja and Low Malabar. But as they did not have enough troops to chase him they waited for reinforcements. The East India Company commandant was Colonel Dow, who Raja knew well from the Siege of Thalassery. Raja thought that this old friend might help him mediate with the Company administration. Raja offered to give up the struggle provided he was pardoned and his treasure and house restored. The Colonel and Raja being old soldiers hated needless bloodshed, so he forwarded Raja's request to the Commissioners, who though they were bitterly opposed to Raja's independent style, agreed to the Colonel's request as there was a risk that Raja might ally with Tipu. So Northern Superintendent ordered the restoration of the Raja's house [but not treasure], and the Raja's pardon was confirmed by the Bombay and Supreme Governments. But the orders of government were communicated to the Raja via Vira Varma – which meant that uncle Raja took care not to report to his nephew that the Company had agreed to his requests. Uncle Raja had a vested interest in the war between the Company and his nephew Pazhassi Raja. Vira Varma also removed Kaitheri Ambu, a favourite noble and general of Raja, from home administration of Kottayam. Ambu along with followers went to Kannavam [also spelled Kannavath and Kannoth], where he planned and executed a mass resistance with people's support, which made sure that Vira Varma could make no tax collection in Kottayam. But Ambu acted clearly on