The film starts with a scene depicting many people being killed mysteriously. The film then cuts to Eashwar Prasad (Jayaram), a politician who vows to resign from his post if the government fails to recover idols which were stolen over a period of six months. This wins the hearts of the masses. It also troubles his political rivals, who forge a plan to destroy his credibility with the help of CBI joint director Vaishnavi Natarajan (Asha Sarath) and Assistant Commissioner of Police Sampath (Murali Sharma).
The two of them plan to interrogate IAS Chanchala (Anushka Shetty), a close confidante of Eashwar who is in jail for murdering her fiancé Shakthi (Unni Mukundan), who is Sampath’s brother. To not arouse suspicion, they decide to shift her to Bhaagamathie Bungalow for the interrogation. Suddenly, a street lamp explodes, and junior policeman Lingamurthy (Dhanraj) screams. The locals are afraid of the bungalow and claim that it is haunted.
Chanchala was Secretary to Eashwar when he was Minister, and she was involved in the implementation of some irrigation projects in a village and this was when she and her now-dead fiancé Shakthi, who was a social worker there, had met and fallen in love and got formally engaged. The CBI tries to question Chanchala to get some clues against Eashwar but she repeats that he is a good man, and that they are doubting his and her integrity without any basis.