In 1769 Hyderabad city became the formal capital of the Nizams. In response to regular threats from Hyder Ali (Dalwai of Mysore), Baji Rao I (Peshwa of the Maratha Empire), and Basalath Jung (Asif Jah II's elder brother, who was supported by the Marquis de Bussy-Castelnau), the Nizam signed a subsidiary alliance with the East India Company in 1798, allowing the British Indian Army to occupy Bolarum (modern Secunderabad) to protect the state's borders, for which the Nizams paid an annual maintenance to the British.