They started to wage a war against the Vāzhunor of Badagara with a view to establishing a factory in Māhe which was only three miles south of Thalassery. Kolattiri through a royal writing granted to the East India Company ’all the trades and farms’ within his ’territory from Canharotte down the Pudupatnam river’, excluding the areas where concessions were held by the Dutch who were based at Kannũr. The British were also authorized to ’punish, prevent and driveaway’ ’any other stranger’ who interfered with their concessions.  1725: French established factory at Māhe by making a deal with Vāzhunor.  1720s Ali Raja of Arackal Raja attacked the then Prince Regent of Kolathunād, Cunhi Homo and he approaches the British for succour in return for the privileges and factory granted to them by his uncle the Kolathiri. August 1727 : Chief of Thalassery informs the Prince Regent that it is the policy of the Bombay Presidency to supply local potentates with ammunition to wage wars at their own expense.  1728 Chief of Thalassery, Adams, was recalled to Bombay and Prince regent asks for military assistance from Dutch at Cochin. The Dutch demanded the port of Dharmapatanam in return. The East India Company fearing Dutch influence supplied Kolathunād with 20,000 fanams of military stores and Ali Rājā was silenced. The British in return were given exclusive permission over other Europeans to buy spices in Kolathunādu by Prince Udaya Varman.  1732-34: Kanarese invaded North Malabar in 1732 at the invitation of the Arackal Raja. Under the command of Gopalaji, 30,000 strong Kanarese soldiers, easily overran Cunhi Homo’s forts in northern Kolathunād. Early in 1734 the Kanarese soldiers captured Kudali and Dharmapatanam  1736: Kanarese army was driven out of the whole of North with assistance from the British but the Prince Regent incurs a huge debt with the factors at Tellichery as a result  1737: Nayaks of Bednur plan another attack on Kolathunādu. Prince Cunhi Homo agreed to sign a peace treaty with the Kanarese which fixed the northern border of Kolathunād on the Madday.