As stated in History of the Panjab Hill States by J.Hutchinson and J.P. Vogel: "Kotli was founded about the fifteenth century by a branch of the royal family of Kashmir. Kotli and Punch remained independent until subdued by Ranjit Singh in 1815 and 1819 respectively."[2]
The royal family of Kashmir Hutchinson and Vogel are referring to is the family of Raja Mangar Pal.
Kotli was historically known as Kotli Mangralan.
There is a famous saying in Kashmir: "Kotli Mangrallan da, Rajouri Jarrallan da, Bhimber Chiban da, Mirpur Gakharan da"
Transalation:
• Kotli is ruled by the Mangral
• Rajouri is ruled by the Jarral
• Bhimber is ruled by the Chib
• Mirpur is ruled by the Gakhar
History of Panjab castes by J. Hutchinson and J.P.Vogel lists a total of 22 states 16 Hindu and 6 Muhammaddan that formed the State of Jammu following the conquest of Raja Ranjit Singh in 1820. Of these 6 Muhammaddan States two (Kotli and Punch) were ruled by Mangrals, two (Bhimber and Khari-Khariyala) by Chibs one (Rajouri) by the Jarrals and one (Khashtwar) by the Khashtwaria. Of these 22 states 21 formed a pact with Ranjit Singh and formed the State of Jammu. Only Poonch previously ruled by the Mangrals and subsequently awarded to Hira Singh, a nephew of Gulab Singh, retained a state of semi-autonomy. Following the War of 1947 Poonch was divided and is now split between Pakistan Administered Kashmir Poonch District (AJK) and Indian Administered Kashmir Poonch