The story starts with a rowdy Daasanna, the follower of another rowdy Naayudamma warning the people of Mahankali market. At the same time, Balu (Pawan Kalyan) sets up a new flower stall in the market. He impresses Daasanna by making him believe that he worships Daasanna's mother, thereby getting relieved of the taxes set up by Daasanna. The people of the market get new hopes looking at Balu's style of impressing the rowdies. Balu newly comes to the city with his mother Rajeshwari Devi (Jayasudha), sister-in-law, nephew and friend (Sunil (actor)). As the story goes on, Balu meets Priya (Shriya Saran), but both start fighting with each other. One night Balu's mother walks to an empty bungalow and faints there, remembering her past in which her husband Ranga Rao (Suman (actor)) and her son would be killed because they supported the people of Mahankali market in getting the rights on the land. The next day Priya comes to the hospital to visit Balu's mother and falls in love with Balu. Priya dares to propose to Balu, but he rejects her love. On the other side, Balu, through Daasanna, tries to steal the documents of Mahankali market which are with Nayudamma at that time and are actually to be sold to Khan (Gulshan Grover). Balu makes Nayudamma believe him by saving him from a planned bomb blast. When Khan arrives, he realizes Balu is none other than Ghani, who worked under him few years back. The flashback unveils the story of Ghani, who changes because of Indu (Neha Oberoi), who in turn changes, getting courage from Ghani. Ghani finally moves against Khan, who tries to kill children in an orphanage. Khan decides to kill Ghani and Indu. Ghani and Indu finally reach Agra, Indu's hometown, where it is revealed that Rajeshwari Devi is actually Indu's mother. Indu changes Ghani's name to Balu. The next day Balu accepts Indu's love, but at the same time Khan's rowdies kill Indu. Balu promises Indu that he would take care of her family and fight people's rights on Mahankali mar