Marathas under Shambhuji were in no position to resist the Mughals. Aurangzeb himself arrived in the Deccan in 1681. Aurangzeb's main goal was the annexation of Bijapur and Golconda. These two sultanates fell to Aurangzeb by 1687. In little over a year, Shambhuji was captured by the Mughals and, after torture, put to death.

The revenue administration of Peshwas was headed by a key official called the kamavisdar. He was appointed by the Peshwa. He was empowered to maintain a small body of soldiers to police the administrative area, from where tribute or tax had to be collected.

Shivaji claimed suzerainty, but he did not administer them himself. He protected the people from loot and plunder for which they were required to pay Chauth (one-fourth of the revenue as protection money)  and Sardeshmuki (an extra one-tenth, as the chieftain's due).

Revenue administration of Shivaji :
(i) Shivaji abolished the zamindari system.
(ii) Loans were provided to the farmers in the times of famine.
(iii) The state also collected custom duties and professional taxes.
(iv) The two important taxes collected during his time were Chauth and Sardeshmuki.
Revenue administration of Peshwas:
(i) The revenue administration of peshwas was headed by a key official called the kamavisdar.
(ii) He was expowered to maintain a small body of soldiers to police the administrative area, from where tribute or tax had to be collected.
(iii) A prospective tax or revenue collector who won the contract was expected to have a reputation for wealth and probity.
(iv) He was required to pay a portion of the whole of the anticipated revenue - one third to one half-either out of his own wealth or from the money borrowed from bankers.

Shivaji's political system consisted of three circles. At the centre was the swaraj. Shivaji would not allow the people to be harassed in any way. In the second circle, Shivaji claimed suzerainty, He protected the people from loot and plunder for which they were required to pay chauth (one fourth of the revenue as protection money) and sardeshmukhi (an extra one-tenth, as the chieftain's due). In the third circle, Shivaji's only objective was plunder. Deshmukhs held sway over rural regions and their control was over between twenty and hundred villages. Each village had a powerful headman (patil), who was assisted by a village accountant of a keeper of records (kulkami).
Army:
Shivaji gave utmost attention to his army and training of its personnel. In the beginning, the backbone of his army was the infantry. In the plains, his cavalry force grew in size and importance. Every soldier was selected personally by Shivaji. Retired captains holding a high reputation were put in charge of guarding the forts.
Ashtapradha
Shivaji designated eight ministers as the Ashtapradhan, each holding an important portfolio. Peshwa was the equivalent of a modem prime minister in the Maratha Empire. Originally, they were subordinates to the Chhatrapati.Shivaji was influenced by the Mughal revenue system. The assessments were made on the actual yield, with three-fifths left to the cultivator and two-fifths taken by the government. In judicial administration, civil cases continued to be decided by the panchayat, the village council, while criminal law was based on the shastras, the Hindu law hooks.
Responsibilities of the Astarpradhan:
Pantpradhan / Peshwa - Prime Minister
Amatya / Mazumdar - Finance Minister
Shurunavis/Sacheev - Secretary
Waqia-Navis - Interior Minister
Sar-i-Naubat / Senapati  - Commander-in-Chief
Sumant / Dubeer - Foreign Minister
Nyayadhish - Chief Justice
Panditrao - High Priest