In 1819 this area was captured by Maharaja Ranjit Singh and it remained under the occupation of Khalsa Darbar of Lahore till 1850.In 1850, Raja Moti Singh who was son of Raja Dhayan Singh, the Prime Minister of Khalsa Darbar set up its separate principality known as Poonch state. Until 1935/36 Poonch remained a separate state, under the Khalsa Durbar. Then it was reduced to a Jagir by Maharaja Hari Singh of Jammu. The period from 1850 to 1947 is considered as the Golden era of the history of Poonch. The Principality of Poonch obtained the status of a state from the British Raj in 1901 during the reign of Raja Baldev Singh.