In 1803, the British occupied Odisha defeating Mukunda Deva who was the king. Khurda was then the capital of Odisha. The British soon started their oppressive  measures. They imposed heavy taxes on the farmers and started exporting salt to other states, as a result of which salt became an expensive item for the common man. The people were annoyed. The British hanged Jayee Rajguru, Minister of Mukunda Deva, in 1804, for leading a revolt against them.

Bakshi Jagabandhu Bidyadhar Mohapatra, who was the commander of the forces of the king of Khurda, was deprived of his power and privileges. His landed property, which his family had been enjoying for generations, was seized. Once a respectable person, Bakshi was now poor and helpless. He made representations to the British authorities to do justice to him, but it was of no avail.

A large number of Paikas lived in Khurda. They were mainly farmers, but at the time of war they joined the army of the king of Odisha. With their help, kings like Kapilendra Deva had built vast empires in the past. The Paikas of Khurda found the British rule unbearable and revolted against the British. Bakshi Jagabandhu, who was utterly humiliated, became their leader.

The rebellion started in March 1817. It was truly a revolt of the masses. The Konds (a tribal  race) of Ghumusar joined the Paikas of Khurda at Banpur, a place in between Khurda and, Ghumusar. They killed some supporters of the  British and looted Rs. 15,000/- from the Government treasury. Then they proceeded towards Khurda and killed Charan Patnaik, who was helping the British betraying his own people.

Such an uprising was unprecedented in British India. The Magistrate of Cuttack, Mr Impey and Lieutenant Travis tried to suppress the rebellion. But they failed. Mr Impey reported to the Government that Khurda was completely in the hands of the rebels. At a place called Gangapara, in Puri district, the Paikas attacked the British force. Pipili was occupied by the Paikas. Martial law was proclaimed in Khurda and all civil activities came to a stop. The Paikas burnt down the court building at Puri. For a few days, the British administration virtually collapsed in Khurda and Puri. The British Government sent a large force under Major Hamilton. At that time the king of Khurda was at Puri. Major Hamilton arrested him and sent him to Barabati Jail. The Paikas found it difficult to fight the well-equipped British force and they moved to areas like Gop (Puri) and Kujang (Cuttack). Inspite of their bravery and determination, they lost to the British force. By mid September 1817 the Paika rebellion was suppressed.

But Bakshi Jagabandhu did not submit to the British. From 1817 to 1825, he managed to elude the British and could not be arrested. After suppressing the rebellion, the British Government granted pardon to most of the rebels and wanted Bakshi Jagabandhu to surrender himself to the British. The Government captured his family members and imprisoned them in Cuttack. But Bakshi Jagabandhu did not surrender.

As preconditions to his surrender, Jagabandhu wanted the release of king Mukunda Deva and return of his landed property to him. But the British Government did not accept the conditions. However, they granted him a suitable allowance for a comfortable living.

Bakshi Jagabandhu was by now old and tired. He had no other way but to accept the conditions laid down by the British. He lived the last four years of his life in Cuttack and died in 1829. Till death, however, he always suffered from the agony that he could not overthrow the British from his motherland.