After occupying Malabar, the attention of the British turned to Kochi and Travancore. They tried to establish their political and commercial interests in these places. In 1800, the Company appointed Col. Macaulay as the Resident of Travancore and Kochi. Macaulay started controlling the internal affairs of these native states. By this, the rulers lost their sovereignty.
Veluthampi was the chief minister (Dalawa) of Travancore. In 1805, the British signed a friendship treaty with Travancore. Through this, the Resident got the power to interfere in the internal affairs of the state, which lost its political freedom. He insisted that the tribute which the state owed to the Company should be paid within a certain time, without giving any consideration to the financial difficulties facing the state. One man named Mathu Tharakan owed a lot of money to the state as tax arrears. Velu Thampi Dalawa ordered to confiscate his property. But Macaulay interfered and canceled the order of the Dalawa. All these incidents prompted the Dalawa to embark on an armed conflict against the Company.
Paliathacchan was the Prime Minister of Kochi. He had enmity with Macaulay. Veluthampi Dalawa made a secret agreement with Paliathacchan. They also secretly contacted the French in Mauritius and the Zamorin of Kozhikode and requested them to give their support in their fight against the Company. In 1808 the combined armies of Travancore and Kochi attacked the residence of Macaulay in Kochi. The Resident escaped in a British ship.
As the revolt was in progress the Dalawa reached Kundara. He issued a proclamation on 11 January 1809 asking the people to join him against the British. This is called ‘Kundara Proclamation’ (Kundara Vilambaram). It is considered as an important document showing the fight of South India against colonization.
The British hit back. They attacked Kochi. Paliathacchan withdrew from the revolt by signing a treaty with the British. The British persuaded the Travancore King to remove Velu Thampi from his post. Unnini Thampi became the new Dalawa. The new Dalawa asked the police, to arrest Velu Thampi. A reward was declared for catching him. Velu Thampi took refuge in a house at Mannadi. When the combined forces of the British and Travancore surrounded the house, Velu Thampi committed suicide. He did not want to be caught alive and insulted. With this, the heroic resistance against the British ended in Travancore.