Ramudu (ANR) is an orphan brought up by his grandmother (baammagaaru) in panchavati, a middle-class colony. One day, on his way back from an interview, Ramu finds a suitcase full of money, which belongs to JB Rao(Nagabhushanam). He returns the money and wins the heart of Seetha (Latha), the only daughter of JB Rao. baammagaaru completes raamakOTi and wishes to visit Bhadrachalam. Ramu gets a job as assistant collector and is posted at Bhadrachalam. He takes baammagaaru along with others in Panchavati Colony. JB Rao also starts to Bhadrachalam at the same time, along with Seetha to marry her off to Giri (Nutan Prasad). JB Rao thinks money is everything, while Seetha thinks it is not. How Ramu, with the help of Seetha, changes JB Rao and how they get married forms the rest of the interesting entertaining film