Teja, Aruna and their supporters revolt against the system and corrupt officials. They fight against the mafia leader gets apprehended and punished.
Lawyer Aruna witnesses a murder of popular MLA Rama Kotayya by a group led by Errodu during early hours at Nehru Park, Hyderabad. However due to political influence of Rama Kotayya's opponent and mafia leader, and the criminal police system, the group gets replaced during police custody by another unidentified group from a nearby settlement of illiterates and laborers. Aruna celebrates New Year's eve with her boy friend Teja, an orphan, and also a lawyer raised by a hostel warden. On that night Teja witnesses the warden offering Teja's photograph to a middle aged stranger (Delhi Ganesh).
The next morning Teja follows him to the settlement in the outskirts of Hyderabad. It is then revealed that the stranger is his real father who was a burglar and has abandoned Teja in his childhood. Teja also finds out that during his childhood, his mother was raped and killed by a criminal police in the settlement. Hence, Teja's father saves him by handling his responsibilities to the warden who would educate him and raise him as a good lawyer.
Teja gets to know that the settlement is subjected to several human rights violations, caste discrimination and atrocities by local politicians and cops who arrest innocent people like Bairagi with false accusations such as burglary and murder. Teja starts to live in the settlement, and protects the villagers from the atrocities of cops. Teja reaches out and negotiates talks with the district collector Satya Prakash to end these atrocities, but the collector fails in his promise due to political pressure and the mafia. Meanwhile one of the sincere constable from the settlement Deeksheethulu kills a criminal sub inspector, however Teja intervenes and protects the constable from inquiry by another sub inspector Phillips . How Teja, Aruna and their supporters manage to revolt against the system, and how the mafia leader gets apprehended and punished forms the rest of the plot. Finally justice is served in the court of law.