Devarata sends his son Madhav along with friend Makarand, and a servant Kalahamsa to study politics under the guidance of Kamandaki.

On the outskirts of Padmavathi, a Kapalik names Aghoraghanta worships the terrible deity Karalasakthi.

He summons his chief disciple Kapalakundala to bring a virgin lady of high birth.

When goes out searching for such a lady, he finds Malathi, who is about to commit suicide in a state of despair.

On the day previous to the marriage, Malathi goes to the temple of Durga, where she has to wear bridal robes presented by Nandana's house.

After the marriage, Nandan goes to the bridal chamber to eagerly meet his wife and is repulsed by Makarand, who is in disguise as Malathi.

Makarand fights them and sends Madayanthi with the help of Kalahamsa to the place where Malathi and Madhava are waiting.

Meanwhile, Kapalakundala, who has taken a vow of vengeance again kidnaps Malathi and Madayanti to give sacrifice to the goddess.