The movie tells the story of a village called Chembattunadu in Palakkad district of Kerala, which is popular as Chattambinadu for the presence of several goons and hooligans. According to retired goons Chenkeeri Madhavan (T. G. Ravi) and Vadival Vasu (Janardhanan (actor)), it was the severe animosity between Mallanchira and Kattappilly families that has caused the arrival of several goons to the land, including them, which made Chattambinadu notorious. The film begins with Mallanchira Chandramohan's (Manoj K. Jayan) plan to sell off his mansion, to pay up his heavy debts. But Kattappilly Nagendran (Siddique (actor)), plays all ways to stop the sale. The local police inspector (Saju kodiyan) informs Chandramohan about Virendra Mallaya (Mammootty), a popular rich man with strong criminal background, who also has strong passion in real estate. Chandramohan approaches Mallayya, who refuses to take up the mansion in the beginning. But upon the request from Dr.Lakshmi (Meenakshi (actress)), his friend, who also hails from Chattambinadu, he decides to buy the property, inviting strong opposition from Nagendran. Mallayya, who speaks Malayalam with strong Kannada accent, arrives at Chattambinadu along with Murugan (Vinu Mohan), his secretary, who is also more like his brother. At Chattambinadu, he comes across Vadival Vasu and his family consisting of daughters Gowri (Raai Laxmi) and Meenakshi(Mythili). To create a rift among the villagers and Mallayya, under the instruction, Dashamoolam Damu (Suraj Venjarammood), a foolish assistant of Nagendran, on one night steals the lorry of Malaya and drives it into the house of Vasu, demolishing it. But Mallaya promises to repair the house with his own money. Murugan, who within this time had developed a soft feeling towards Meenakshi, takes them along with Maakri Gopalan (Salim Kumar) to Mallaya's house. Dr.Lakshmi on her day of arrival at Chattambinadu on vacation comes to know from her brother that Nagendran has decided to marry he