Harischandra Prasad (Venkatesh), the arbitrator and most respected person in a village, sees to it that all the people live happily.

Bhanu has to do menial household work and has virtually no relationships with his family, with the exception of his mother.

As a child, Bhanu was poor in studies to the extent that he remained illiterate, which is why Harischandra Prasad dislikes him.

Prior to the wedding, Madhavi attempts suicide to escape from being married to Bhanu, as she did not want to unite with an illiterate man.

Harischandra Prasad banishes Bhanu from the house and he and Swapna start living in the village outskirts.

In due of time with hard work, Bhanu Prasad gradually becomes one of the biggest businessmen in town and Swapna the District Collector.

They have a fine young son, Junior Harischandra Prasad (Master Anand Vardhan).

Harischandra incidentally comes across his grandson and develops a secret friendly relation with him, meeting him regularly.

One day, Bhanu gives his son some canned Payasam (rice pudding) to be offered to his father.

Vasundhara learns of the secret meeting of Harischandra with his grandson and urges him to accept Bhanu back into their family.