Ahmed Bakhsh Khan was most enterprising. He first obtained employment in state Army of Sindhia at Gwalior. It was not a high ranking appointment, but the family lived in comfort. After some time he engaged in Horse trading. A family legend relates that once he had a fine horse but no buyer. The anniversary of Hazrat Moin ud Din of Ajmer, the chief saint of the subcontinent at which there was annually a very large gathering drew near and Ahmed Bakhsh Khan left for Ajmer, intending to sell his horse to some rich man or a noble there, but here too he met with the disappointment. His circumstances being rather straitened he went into the Dargah and prayed most fervently for GOD blessing. As it happened, he soon after sold his horse for a good price and on his return journey fell in with Maharaja Bukhtawar Singh of Alwar, who was going home the same way. By now a man of the world and obviously good manner, Ahmed Bakhsh Khan so impressed Raja Bukhtawar by his courtliness that he offered him an appointment. When the British east India Company entered into a treaty with state of Alwar, just before the war with Sindhia the Maharaja sent Ahmed Bakhsh Khan as his Vakeel (agent) or representative. During the negotiations that followed Ahmed Bakhsh Khan gave proof of an astute diplomatic mind, and won the confidence of both the Maharaja and the British.
In British Army General Lake took up his duties at Calcutta in July 1801, and applied himself to the improvement of the East India Company army, especially in the direction of making all arms, infantry, cavalry and artillery, more mobile and more manageable. He inducted most of the experienced Moghul Army men who were released by Shah Alam Grand Wazir Majad-ud-Daula earlier. In 1802 Lake was made a full General.
When the British forces invested the fort of Dig, in Bharatpur, Ahmed Bakhsh Khan persuaded the Maharaja Bukhtawar Singh to side with English. What is more Ahmed Bakhsh Khan was given command of the Alwar contingent, to help the English, in their fight against Holkar. Ahmed Bakhsh Khan also proved resourceful in the matter of supplies. To crown all, during the fight Ahmed Bakhsh rushed to the aid of the British commander (Major General Fraser) when he fell wounded and brought him out of the mill. General Fraser had been fatally wounded, but before he died he wrote a strong note in praise of Ahmed Bakhsh’s gallantry. This dispatch (still extant in the archives of Loharu) won for Ahmed Bakhsh recognition and award from both Lord Lake and Maharaja of Alwar. He was given the districts of Ferozepur Jhirka (including Ponahana, Bichchoq and Sangeras) in Gorgaon district in hereditary rent free tenure, with the title of Fakhr-ud Doulah, Dilawar-ul-Mulk, Nawab Ahmed Bakhsh Khan Bahadur, and Rustam Jang. Maharaja Bukhtawar Singh of Alwar who was present at the investiture made a gesture himself. He gave Ahmed Bakhsh Khan and his decedents the state of Loharu on the same conditions. Ahmed Bakhsh Khan also resided in Delhi in a style befitting his new position. It was into this family that first, Mirza Ghalib’s uncle Mirza Nasrullah Beg son of Mirza Quoqan Beg and then young Asad Ullah Khan Ghalib were married. Nasrullah Beg was married to the sister of Ahmed Bakhsh Khan, daughter of Mirza Arif Jan Beg and Young Asad Ullah Ghalib, grandson of Mirza Quoqan Beg was to his niece daughter of Ilahi Bakhsh Maaruf and granddaughter of Mirza Arif Jan.
The name ‘Loharu’ comes from the word ‘lohar’ (blacksmiths) because the gold coins of Jaipur State were minted there.