Explanation: Baji Rao I initiated the system of confederacy among the Maratha chiefs. Under this system, each Maratha chief was assigned a territory that could be administered autonomously.

• As a result, many Maratha families became prominent and established their authority in different parts of India.
• They were the Gaekwads at Baroda, the Bhonsles at Nagpur, the Holkars at Indore, the Scindias at Gwalior, and the Peshwas at Poona.

Source: NCERT