The movie begins with three friends Sameer (Abhiram Bhadkamkar), Ravi (Shreyas Talpade) and Bharat (Bharat Jadhav) who arrive in an Osadwadi, a small village. They are working in a bank and have been transferred to this village branch. Any new transferees that arrive are routinely made to stay in a wada, till they find alternate arrangements and the wada is incidentally mortgaged to the bank. Many transferee's had left the job and left the village due to strange things happening in the wada.

According to villagers the wada is haunted by the ghost of Durga (Vandana Gupte), who was killed when she slipped into the well. The trio meet police inspector Mahesh Jadhav who tells them that Durga's death was not an accident. She was pushed by someone from behind when she was drawing water from the well. The story flashes back to 16 years ago.

Inamdar (Dilip Prabhawalkar) was a rich man who owned the wada. He lived with his mentally deranged son, Babya (Ameya Hunaswadkar) and his trusted aide Kirkire (Vijay Chavan). Inamdar plans his son's marriage in a village far away from theirs. The fact that Babya is not of sound mind was concealed from the girl's parents and the wedding was fixed at the Temple of Narsobachi Wadi. During the wedding Durga, who was an old friend of the girl's mother, tells everyone that Babya was mentally deranged and this fact was hidden by Inamdar. The marriage is broken and the irate guests attacked Inamdar and Kirkire is killed. Babya is sent to a mental hospital where he commits suicide and this results in Inamdar having a fatal heart attack. Before he died he swore that he would come back from the dead and take revenge on Durga and would not allow Durga's daughter Manisha (Ashwini Kulkarni) to get married or let any auspicious event happen in Durga's house. A few years pass and Durga too died suddenly by slipping and falling into the well in her compound. It was rumored that the ghost of Inamdar pushed her into the well. Her daughter is now looked after by Durga's brother-in-law and sister-in-law, who brought her up as their own daughter. It is believed that the ghosts of Inamdar, Babya and Kirkire haunt the Inamdar Wada.

After returning to the wada, the three friends make fun of Inamdar, Babya and Kirkire in front of their portrait. Ravi is already in love with Manisha whom he has met in the city before and he is excited to come to the town of his sweetheart. He is a non-believer in ghosts and hence is very comfortable in the wada. Sameer is a scared type and is terrified with the place. Bharat is of Manushya Gan as per his horoscope and it is believed that any person with Manushya Gan is highly susceptible to ghosts. Ravi and Manisha plan to marry. Sameer seeks the help of his friend Sunayna (Nelam Shirke) who takes him to fraud tantric Vetale Guruji (Laxmikant Berde). Bharat gets possessed by the three gh