But Keigwin was no match for the subtle and unprincipled Sir Josiah Child and his brother John. Josiah had been originally brought into the direction of the Company by Barnardiston and Papillon, and was supposed, and he allowed it to be supposed, that he was as ardent a Whig as were they. He had for years stood high in the opinion of the chiefs of the Parliamentary opposition, and had been especially obnoxious to the Duke of York.

There had for some time been interference with the monopoly by what were called "interlopers" or free traders, to the great vexation of the Company. These interlopers now determined to affect the character of loyal men, who were determined to stand by the Crown against the insolent Whigs of the Company. "They spread at all the factories in the East reports that England was in confusion, that the sword had been drawn or would immediately be drawn, and that the Company was forward in the rebellion against the Crown. These rumours, which in truth were not improbable, easily found credit among people separated from London by what was then a voyage of twelve months. Some servants of the Company who were in ill humour with their employers, and others who were zealous Royalists, joined the primitive traders."

On December 27th, 1683, Captain Keigwin, assisted by Ensign Thornburn and others, seized on Mr. Ward, the deputy governor, and such members of the Council as adhered to him, assembled the troops and the militia, pronounced the authority of the East India Company as at an end by formal proclamation, and declared the island to be placed under the King's immediate protection. Thereupon the garrison, consisting of one hundred and fifty English soldiers and two hundred native topasses, and the inhabitants of the island, elected Keigwin to be governor, and appointed officers to the different companies, store-keepers, harbour-masters, etc., declaring, however, that the Company might, if their servants would acknowledge the King's government as proclaimed, proceed in their several avocations without molestation. Keigwin then took possession of the Company's ship Return and the frigate Huntley, and landed the treasure, amounting to fifty or sixty thousand rupees, which he lodged in the fort, and he published a declaration that it should be employed solely in the defence of the King's island and government.

But Child looked ahead, and saw that inevitably James, Duke of York, at no very distant period would be King of England. The Whigs were cowed by the discovery of the Rye House Plot, and the execution of Lord Russell and Algernon Sidney. It was high time for Child to turn his coat, and this he did rapidly and with dexterity. He forced his two patrons, Barnardiston and Papillon, out of the Company, filled their places with creatures of his own, and established himself as autocrat. Then he made overtures to the Court, to the King, and to the Duke of York, and he soon became a favourite at Whitehall, and the favour which he enjoyed at Whitehall confirmed his power at the India House. He made a present of ten thousand pounds to Charles, and another ten thousand pounds to James, who readily consented to become a holder of stock. "All who could help or hurt at Court," says Macaulay, "ministers, mistresses, priests, were kept in good humour by presents of shawls and silks, birds' nests and attar of roses, bulses of diamonds and bags of guineas. His bribes, distributed with judicious prodigality, speedily produced a large return. Just when the Court became all-powerful in the State, he became all-powerful at the Court."

Against such machinations as these Keigwin was powerless. Whatever Child asked should be done to maintain the authority of the Company was granted. Keigwin had appealed to hear the will of the King. The King's answer was but the echo of the voice of Child.

On the 31st January, 1683-4, President John Child from Surat arrived off Bombay with some commissioners, and met Keigwin with offers of pardon for his rebellion, but the offer was indignantly refused. Keigwin would deal with no one but the King himself, and some plain truths were told to John Child, that it was he and his brother, by their greed after gold and indifference to the welfare of the settlement, that caused all the trouble. The consultation lasted till March, 1683-4, and then Child had to return to Surat, without having effected anything.

In the meantime the Court of Directors sent in a report to the King, on 15th August, 1684, with a long statement of its grievances, and a claim for protection, according to the charter of the Society.

Charles II could do no other than order that the island should be delivered over to the Presidency of Surat, and a Commission under the Great Seal was issued to President Child and to the commanders of the Company's ships, empowering them to receive the surrender of Bombay from Keigwin and his associates and to offer a generous pardon to all, except the four ringleaders, who should within twenty-four hours after notice return to their duty.

Captain Tyrell, with H.M.S. Phœnix, frigate, was despatched, with Sir Thomas Graham as admiral, to settle the affair.

But Captain Keigwin had no idea of resistance. It had been further ordered that if Keigwin and his followers should attempt opposition, all should be denounced as rebels, and a reward of 4000 rupees should be paid to any one who should deliver up Keigwin, and 2000 for Alderton, and 200 for Fletcher.