The movie story deals with Raghava a typical jobless youth who spends his days playing cricket with friends.
He suffers from an irrational fear of ghosts, and retreats to the safety of his home after sunset.
So great is his fear, that he prefers to sleep with his mother and have her accompany him to the bathroom at night.
This creates major annoyance in the household, including Raghava's brother, sister-in-law and their children.
One day, Raghava and his friends are forced to abandon their usual cricket ground and find a new one; they unwittingly select an abandoned ground which is rumored to be haunted.
A bizarre weather change scares them away.
Raghava brings home his cricket stumps, which have been stained with blood from a buried corpse in the ground.
He focuses on wooing Priya, the sister of his sister-in-law.
In the following days, his mother and sister-in-law are witness to several paranormal phenomena at night; prominently a ghost haunting the hallways.
On consulting a priest, they perform rituals to ascertain if the house is haunted.
Their fears are confirmed.
Scared senseless, Raghava's mother and sister-in-law hire two priests to rid their home of the ghost.
The priests, however, are conmen, and escape with their lives.
That night, the ghost possesses Raghava, who begins acting increasingly effeminate, alienating himself from Priya and wearing women's clothes and jewelry.
His family angrily confronts him, when it is revealed that there are actually three ghosts who have possessed him: a violent woman, a Hindi-speaking Muslim, and a mentally retarded boy.
Raghava's family hires an exorcist, who successfully drives the spirit away from Raghava's body.
The ghost of the woman, trapped, reveals her story.
Kanchana is a transgender who was disowned by her parents.
She is offered shelter by a kind Muslim, who has a mentally retarded son.
Regretting that she couldn't become a doctor as she intended, she adopts another young transgender, Geetha, and works hard to support her financially.
When Geetha leaves to study medicine abroad, Kanchana buys a plot of land where Geetha intended to construct a hospital for the poor.
That ground is unlawfully taken by crooked MLA Shankar.
Kanchana angrily confronts the MLA, who cunningly kills her.
He also kills Babu Antony and his son.
Before she died, she vowed to kill Shankar, his wife, and his henchmen.
The bodies are then buried in Kanchana's own ground.
The exorcist sympathizes with her, but remains duty-bound and traps her.
After hearing her story, Raghava is touched; risking the danger, he allows Kanchana to possess him once again.
Raghava/Kanchana confronts the MLA, and disposes of his henchmen gruesomely.
The MLA seeks refuge in a Narasimha temple which Kanchana is forbidden from; but she asks the deity for justice and manages to chase him inside the temple.
The three spirits combined kill the MLA.
A few years later, Raghava has constructed the hospital for Geetha as per Kanchana's wishes.
It is revealed that Kanchana exists symbiotically in Raghava's body to help him out when the need rises.