Soon after the siege of Bhopal, came another defining moment of Bhopal’s history. Stung by the failure of siege, Daulat Rao Scindia began preparing another strong force to punish and subjugate Bhopal. Gwalior again claimed Bhopal as a tributary state and demanded subjugation. At this point, the British Resident [a synonym for Agent to the Governer –General (AGG). The resident supervised the work of Political Agents appointed to princely states], Sir Barry Close, stepped in and conveyed a clear warning to Gwalior that the British would not countenance the subjugation of Bhopal as a tributary state and would support its territorial integrity which the British proceeded to define. For several years, Gwalior insisted with the British that, according to a treaty with the Marhattas signed in 1805, Bhopal was a tributary of Gwalior. Eventually, in 1819, the Governor-General wrote to the Maharajah of Gwalior and also to Nagpur, Indore and Hyderabad informing them that the British considered Bhopal as an independent state under British protection (Reference: Federal Department Political Consultation (FDPC) Records No 60 dated 18 May 1815, Indian National Archives, New Delhi). Gwalior heeded the British warning, returning five districts to Bhopal’s territory and the forts of Islamnagar and Raisen.
Wazir established regular contact with the East India Company sending emissaries to General Sir John Ochterlony in Delhi, and later entered into correspondence with the Governer-General Lord Wellesley and other officials of the Company. By 1816, Wazir was the most powerful ruler Bhopal had known since Dost. He had, however, become addicted to alcohol, which gradually undermined his health. Wazir died on 16th March 1816 at the age of 50, after ruling Bhopal for little more than nine years, at the age of 50. He was buried at Bara Bagh.