The Nizam invaded Pune, where he installed Sambhaji II as the King. He then marched out of the city, leaving behind a contingent headed by Fazal Beg. The Nizam plundered Loni, Pargaon, Patas, Supa and Baramati, using his artillery. On 27 August 1727, Baji Rao began a retaliatory guerilla attack on the Nizam with his trusted lieutenants Malhar Rao Holkar, Ranoji Shinde and the Pawar brothers. He began to destroy the towns held by the Nizam; leaving Pune, he crossed the Godavari River near Puntamba and plundered Jalna and Sindkhed. Baji Rao destroyed Berar, Mahur, Mangrulpir and Washim before turning north-west to Khandesh. He crossed the Tapi River at Kokarmunda and entered eastern Gujarat, reaching Chota Udaipur in January 1728. After hearing that the Nizam had returned to Pune, Baji Rao feinted toward Burhanpur; he thought that after hearing about the threat to the strategically-important Burhanpur, the Nizam would try to save it. Baji Rao did not enter Burhanpur, however, arriving at Betawad in Khandesh on 14 February 1728. When the Nizam heard that his northern territories had been devastated by Baji Rao, he left Pune and marched towards the Godavari to meet Baji Rao on an open plain where his artillery would be effective. The Nizam went on ahead of his artillery; on 25 February 1728, the armies of Baji Rao and the Nizam faced each other at Palkhed, a town about west of Aurangabad. The Nizam was quickly surrounded by Maratha forces and trapped, his lines of supply and communication were cut. He was forced to make peace; he signed the Treaty of Mungi Shevgaon on 6 March, recognising Shahu as the King and the Maratha right to collect taxes in the Deccan.