After Rajrajeshwori took over the regency, she was pressured by Knox to pay the annual pension of 82,000 rupees to the ex-King as per the obligations of the treaty, which paid off the vast debt that Rana Bahadur Shah had accumulated in Varanasi due to his spendthrift habits. The Nepalese court also felt it prudent to keep Rana Bahadur in isolation in Nepal itself, rather than in the British controlled India, and that paying off Rana Bahadur's debts could facilitate his return at an opportune moment. Rajrajeshwari's presence in Kathmandu also stirred unrest among the courtiers that aligned themselves around her and Subarnaprabha. Sensing an imminent hostility, Knox aligned himself with Subarnaprabha and attempted to interfere with the internal politics of Nepal. Getting a wind of this matter, Rajrajeshwari dissolved the government and elected new ministers, with Damodar Pande as the "Mulkaji", while the Resident Knox, finding himself persona non grata and the objectives of his mission frustrated, voluntarily left Kathmandu to reside in Makwanpur citing a cholera epidemic. Subarnaprabha and the members of her faction were arrested.