The Alwar state may be said to have been formed as a separate, independent state when Rao Pratap Singh, its founder, first raised his standard over the Alwar Fort on November 25th 1775.During his rule the then districts of Thanagazi, Rajgarh, Malakhera, Ajabgharh, Baldeogarh, Kankwari, Alwar, Ramgarh and Lachhmangarh, and areas around Behror and Bansur, were finally integrated to form the State. As the State was being consolidated, naturally, no definite administrative machinery could have come into being. At the time, the states revenue was between six to seven lakhs of rupees per annum.
The next ruler Maharao Raja Bakhtawar Singh(1791-1815) also devoted himself to the work of extension and consolidation of the terriotory of the State. He was successful in integrating the pargannahs of Ismailpur and Mandawar and the talukas of Darbarpur, Rutai, Nimrana, Mandhan, Beejawar and Kakoma in the Alwar State. Maharao Raja Bakhtawar Singh rendered valuable services to Lord Lake, during the latter's campaign against Marathas, in the battle of Laswari, in Alwar territory when the State troopes assisted him in finally breaking the Marathas and Jat powers.
As a result, in 1803, the First Treaty of Offensive and Defensive Alliance was forged between Alwar State and the East India Company. Thus, Alwar was the first princely State in India to enter into Treaty Relations with the East India Company. But in his time also, the State Administration was very imprefect and cases of loot and dacoity, even in broad day light, were not infrequent. The State was borrowing money from outside as its finances were poor and mismanaged. Most of the land revenue was use to pay back the loans and, at times, the farmeres were put to hardship The State was heavily indebted when the next ruler Maharao Viney Singh acceeded to the throne.
Maharao Raja Viney Singh (1815-1857) suppressed the social anarchy and was to a great extent, successful in stabilising the general conditions in the State. It was in his time that the Alwar State administration began to take shape. According to the Imperial Gazetter of India, " The Government had previously been carried on without any system. But with the aid of certain Musalmans introduced from Delhi and appointed ministers in 1838, great changes were made. The land revenue began to be collected in cash instead of kind and civil and criminal courts were established."