Raghunath Rao conducted the administration of affairs as prime minister, after the manner of the late Bhao.
One of the remarkable incidents that occurred in Madhu Rao's reign was the appearance of a counterfeit Bhao, who, in the year 1175 A.H. (1762-3 A.D.), having induced a number of refractory characters to flock to his standard, and having collected together a small amount of baggage and effects, with camp equipage and cattle, excited an insurrection near the fort of Karaza, which is situated at a distance of twelve leagues from Jhansi towards the west. He gave intimation to the governor of the fort, who held his appointment of the Poona chiefs, as to his name and pretensions, and summoned him by threats and promises into his presence. The latter, who, up to that time, had been in doubt whether Bhao was dead or alive, being apprehensive lest this individual should in reality prove to be Bhao, proceeded to wait upon him, and presented some cash and valuables by way of offering. After that, the Bhao in question sent letters into other sub-districts, and having summoned the revenue officers from all quarters, commenced seizing and appropriating all the cash, property, and goods. Whatever horses, elephants, or camels he found with any one, he immediately sent for and kept in his own possession.
This pretender to the name of Bhao always kept his face half-covered under a veil, both in public and private, on the plea that the wound on his visage was still unhealed, and people were completely deceived
