Makrai state formed an enclave surrounded by British territory of the nerbudda Division of the Central Provinces.

The royal lineage of this state belongs to Rajput's of the Gond family. They are title as Raja Hatiyarai by the Emperor of Delhi. According to legend, this state was established in 1663 by Raj Gond Raja Karkat Rai. In the 18th century, they struggled with the varying degree with the Poona Peshwa, Sindhia and the Pindaris.

The above show copper coin was minted in the reign of Raja Bharat Shah. The obverse of this coin depicts a Katar in the centre within two diamond shaped borders. The reverse of this coin depicts a legend in Devanagari ‘SRI/MAK/RAI'.

In 1890 British government took over Makrai state under the doctrine of lapse owing to bad administration. Later in 1893 power was restored to the native ruler.

After independence, the ruler of this state acceded to the Union of India on 1st February 1948.

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