Notwithstanding this, in 1719, the province of Baçaim numbered still about 60.000 inhabitants, of these 2.000 were the Portuguese and 58.000 were the Christian Indians.

In 1720, one of the ports of Baçaim, Kalyan, was conquered by the Mahrattas, and in 1737, they also took possession of Thana, all the forts in Salcete island and the forts of Parsica, Trangipara, Saibana, Ilha das Vaccas, Manora, Sabajo, the hills of Santa Cruz and Santa Maria.

The only places in the Northern Provinces, that now remained to the Portuguese were Chaul, Caranja, Bandora, Versova, Baçaim, Mahim, Quelme, Seridao (Sirgao), Danu, Asserim, Trapor, and Damao.

In November 1738, the Mahrattas, captured the fort of Danu, and on 20 January 1739, Mahim capitulated, the loss of Mahim, was speedily followed by the capture of the forts of Quelme, Seridao, Trapor, and Asserim (13 February 1739).

On 28 March 1739, also the island and the fortress of Caranja, was lost.

This was the prelude to final loss of the city, indeed, in February 1739, the Mahrattas attacked Baçaim, and after a desperate resistance, on 16 May 1739, the last Portuguese upholders, signed the surrender. The Portuguese, left Baçaim on 23 May 1739.

After 205 years of uninterrupted Portuguese rule, Baçaim (now under the Mahrattas), was progressively neglected, and the neighbouring English Bombay, took his place.

During the war against the Mahrattas (1737-1740), the Portuguese lost, besides Baçaim, eight cities, four chief ports, twenty fortress, two fortified hills, the island of Salcete (Salsette) with the city and the fortress of Thana, the "Ilha das Vaccas", the island of Karanjà (Juem), and 340 villages.

The losses amounted to nearly the whole of the northern provinces, only the town of Damao was held.