After the massacres of Kot and Bhandarkhal, the Thapas, Pandes, Basnyats and other citizens had settled in Banaras. Similarly, some citizens had gone to settle in Nautanwa and Bettiah. Chautariya Guru Prasad Shah too had gone to live with the King of Bettiah. After knowing about the presence of the King and the Queen in Benaras, Guru Prasad went there and started to congregate an army and a plan to execute Jung Bahadur started to be formed.
*Battle of Alau
In 12 May 1847, Jung Bahadur gave a speech in Tundikhel. There he accused the King of the attempted assassination of the Prince and the Prime Minister. The Council then decided to dethrone King Rajendra deeming him mentally ill, and on the same day Surendra was crowned as the new king of Nepal. Hearing the news of the coronation of Surendra, Rajendra decided to take the responsibility of removing Jung Bahadur upon himself and declaring himself as the leader of the army, he left Benaras. Rajendra then appointed Guru Prasad Shah as the Chief of the Army for the operation of removal of Jung Bahadur Rana from Nepal and started to accumulate weapons and training the troops. Antagonism from the British-India Company forced Rajendra and his troops to enter Nepal. On 23 July, the troops reached a village called Alau in Bara and set a camp there. One spy group of the Government of Nepal was keeping close eyes on the event of the rebel groups at Bettiah. They sent the news to Jung Bahadur, immediately after which he sent a troop in the leadership of Sanak Singh Tandon to Alau. They were told to suppress the rebellions, arrest Rajendra and bring him to Kathmandu. On 27 July, the Gorakhnath Paltan (Gorakhnath Battalion) reached and rested in a village called Simraungadh, not too far from Alau. The battle of Alau was a decisive one between the forces of King Rajendra and Jang Bahadur. The King lost significantly in the battle. If the massacre of Kot had established Jung Bahadur as a dictator, the battle of Alau had helped him strengthen his dictatorship. Rajendra was imprisoned in an old palace in Bhaktapur.
*Rise to royalty
On 15 May 1848, a Lal Mohar (Red sealed document) was issued claiming descent from Ranas of Mewar and authorizing the Kunwar family of Jang Bahadur to style themselves as Kunwar Ranaji. On 6 August 1856, Jang Bahadur Kunwar (now Ranaji) was conferred the title of Maharaja (Great King) of Kaski and Lamjung, two former hill principalities, by King of Nepal, Surendra Bikram Shah.