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Ownership of the region was contested between several local princes, among others the Nizam of Hyderabad. This resulted in drawn-out wars in the region. Finally, the administration of Berar was in 1853 ceded to the British ('to be held in trust') by the Nizam of Hyderabad, who remained its titular Head of State.
In 1902, one of his successors - Sir Mahbub Ali Khan - leased Berar to the British in return for a yearly payment.
So Berar was not really 'annexed' but more or less rented out to the British, who then for reasons of effective administration merged it with the Central Provinces.
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