The princely state of Bakhatgarh was founded by Rao Nagmalji a Parmar rajput in 1395. The capital of the state was Pitgara until 1765 when Rao Bakhat singhji shifted the capital to the newly found village of Bakhatgarh. The Raos of Bakhatgarh were also the Mandloi of Badnawarpargana. The mandloiship of Badnawar was granted to Rao Daulat Singhji of Bakhatgarh by Mughal emperor. The state consist of 32 Istimirar villages, 3 Inam villages, 9 Khasgi villages (7 Badi Khasgi and 2 Choti Khasgi) and 27 hamlets.
The state had an area of 171 square kilometers and yielded a revenue of Rs 80,000 in 1915.[2]
During British Raj, the Badnawar pargana consisted of 158 villages of which 101 were guaranteed, 23 were khalsa villages, and the remaining 34 were alienated to non-guaranteed thakurats.
The Chief of Bakhatgarh, who was also the mandloi of Badnawar, was entitled to collect dami from all guaranteed and non-guaranteed Thakurs of Badnawar as appertain to his zamindaree right (Mandloiship).