Kiran (Aadi Saikumar), a TV serial director loses a lot of money after his serial is shelved and is in deep debts. He, along with his girlfriend Smita (Vaibhavi Shandilya) learn about a dilapidated ancestral palace in
Araku Valley through a letter sent by his late father, and they decide to convert it into a resort and make money to clear their debts, for which he cons the son of JP (Jayaprakash Reddy), his creditor, and flees for Araku with Smita. He takes the help of Sharath (Brahmaji) and his bombshell sister Rashmi (Rashmi Gautam) in converting the palace into a resort. Starting from the first day, customers start coming in. A couple named Anandam and Sadanandam, a Chinese woman, her husband and their two family members, a drillmaster and a bodybuilder all die within one night of stay at the premises, except a schoolteacher and a bunch of kids. They dig graves and cover them up. The local digger tips the police after observing that they have been digging in the ground several times. He finds this suspicious and thinks that they are searching for some treasure underground. When Kiran is questioned by the police, he tells them that his guests have mysteriously died. The police check the register and find the names. However, the police tell him that all these people were the former owners of the palace, who had already died years before in the same manner how they died in his resort, within a few days of registering it in their name. Kiran comes to the palace and informs others that the guests had already died years before after checking the register of his resort, finding out that they wrote the address of his resort. Meanwhile, they encounter an old man (L. B. Sriram) who tells them that this palace is haunted by a devil (Himaja) and that he accidentally released it when he was allured by its human form, and it will kill whoever buys the palace, indicating that Kiran will be next. They try to seek the help of RGV (Raghu Babu), an exorcist, who turns out to be a cheat and is beaten by the devil. At the day of full moon (Ammavasya), the devil attains superpowers and possesses Smita, Sharath and Rashmi in an attempt to kill Kiran. In the ensuing melee, JP and his son along with his gang break into the palace. He forces Kiran to transfer the ownership of the palace to him, despite the latter's attempts to dissuade him. As Kiran and his group come out of the palace the ghosts of the former owners start going inside, with JP and his gang joining them, implying that the ghost has killed them. Lamenting about them, Kiran and his group leave the palace. == Cast ==