On 11 March 1783 Sikhs entered Red for in Delhi and occupied the Diwan-i-Am, the Mughal Emperor, Shah Alam II, made a settlement with them agreeing to allow Baghel Singh to raise Gurdwaras on Sikh historical sites and realize six annas in a rupee of all the Octrai duties and tax collected by state (37.5 %).

Baghel Singh stayed in Sabzi Mandi area of Delhi, with 4000 troops, and took charge of the police station in Chandani Chowk.

He located seven sites conencted with the lives of the Gurus and had shrines raised thereon within the space of eight months, from April to November 1783.

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