After the death of the Nizam-ul-Mulk in 1748, the Nizam of Hyderabad, a civil war for succession, now known as the Second Carnatic War, broke out in the south between Mir Ahmad Ali Khan (Nasir Jung), the son of the Nizam-ul-Mulk, and Hidayat Muhi ud-Din Sa'adu'llah Khan (Muzaffar Jung), the grandson of Nizam-ul-Mulk.
This opened a window of opportunity for Chanda Sahib, who wanted to become Nawab of Arcot. He joined the cause of Muzaffar Jung and began to conspire against the Nawab Anwaruddin Muhammed Khan in Arcot. The French allied with Chanda Sahib and Muzaffar Jung to bring them into power in their respective states. But soon the British also intervened. To offset the French influence, they began supporting Nasir Jung and Muhammad Ali Khan Walajah (son of the deposed Nawab Anwaruddin Muhammed Khan of Arcot). Initially, the French succeeded in both states in defeating and murdering their opponents and placing their supporters on thrones in 1749. In 1751, however, Robert Clive led British troops to capture Arcot. Clive's success led to additional victories for the British and their Nizam and Arcot allies. The war ended with the Treaty of Pondicherry, signed in 1754. Muhammad Ali Khan Walajah was recognized as the Nawab of Arcot. The French leader Dupleix was asked to return to France. The directors of the French East India Company were dissatisfied with Dupleix's political ambitions, which had led to immense financial loss. In 1754, Charles Godeheu replaced Dupleix.