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 The Rája agreed at the time to disband his troops except certain Rájputs who belonged to his own clan, and in 1788 he Was formallv ordered to reduce his forces and was granted a new lease at the enhanced peshkash of nine lakhs recommended by the Committee, his zamindari being however increased by the addition of the estates of Anakápalle, Uratla and Satyavaram. He evidently disobeyed the instructions regarding the reduction of his troops, and in comsequence had difficulty in meeting the enhanced peshkash. His brother Sítaráma Rázu was removed from the office of diwan about 1784 and retired, it is stated, to Simháchalam, where he made the rose-garden which still stands (see p. 323) at the foot of the steps leading to the temple on the hill there. In 1790, however, he regained his post; was dismissed by his brother in November 1791; taken back again in February 1792; removed by order of Government; and required in August 1793 to reside in Madras, whither he proceeded accordingly and lived on a pension from Government of Rs. 5,000 a month.

By this time 1 the Rája's incompetent management of the estate had led to the accrual of arrears of peshkash amounting to no less than 6¼ lakhs, and the Chief and Council reported that the security of the revenue and the general welfare of the country could be ensured by no method short of the sequestration of the zamindari. The oppressions of Sítaráma had raised revolt among the lesser zamindars and very serious disturbances were apprehended unless ' a decided and immediate check and an entire change of system ' could be introduced. The Government threatened that unless all the arrears were paid the estate would be attached and the Rája removed and pensioned, and they sent to Vizagapatam a detachment of Europeans, artillery and sepoys, under Lieutenant-Colonel Prendergast, to enable them to enforce these measures. The Rája, in this extremity, offered to pay 5½ lakhs of the arrears (which by now had grown to 8½ lakhs) in three equal instalments in a reasonable time, but the proposal was rejected by the Board of Revenue and the Government, and on 2nd August 1793 the sequestration was effected by Colonel Prendergast taking possession of the Vizianagram fort. The Rája was still, however, so powerful that no one would come forward to rent any part of the estate, and, while making every outward sign of submission, he intrigued to render impossible any management