The film opens with a bunch of gangsters, led by Ganesh, waiting outside the (fictional) VAS college of Arts & Sciences. A college student JD (JD Chakravarthy) gestures to the goons and they proceed to savagely assault another student and his friends.
It turns out that JD is a student leader, a big-man-on-campus, who is the (unopposed) President of the Student Union at the college. He is also the lowest rung in a gang ladder that reaches through Ganesh, the local goon, to Bhavani (Raghuvaran). Bhavani uses this network to provide political (and criminal, as needed) muscle to the local politician Machiraju (Kota Srinivasa Rao).
Siva (Nagarjuna) is a new student at college. He joins a small group of friends including Malli (Subhalekha Sudhakar) and Asha (Amala). JD is known to cause petty troubles (such as leering at the girls and insulting the professors). He falls upon Siva in a chance encounter. When he provokes Siva, Siva hits back. Further, Siva chases JD across campus in plain sight and inflicts vicious punishment. JD is shocked as nobody has previously confronted him like this for fear of his gang connections.
This incident sparks two things. JD fetches Ganesh to sort out Siva, and, Malli and the other students, now encouraged by Siva's actions, implore Siva to run for President at the next election. Siva proposes that the more qualified but nerdy Naresh (Jagan) run instead. Ganesh first attempts to talk Siva out of it. But Siva tells him off, claiming that college matters are to be kept within the campus community and that lowly gangsters from outside need not interfere.
When Ganesh attempts to use force, Siva beats him back too. The matter comes before Bhavani. Bhavani is mildly annoyed, but he studies Siva as a potential replacement for JD. At his behest, Naresh is assaulted and rendered unable to run. At this point, Siva accepts the nomination and decides to run.
Meanwhile, Bhavani has other troubles. He refuses to side with a worker's union leader Krishna Reddy. Krishna Reddy takes his plight to Siva; Siva agrees to help in return for muscle; and Krishna Reddy provides this by calling upon the workers. Around this time, Asha expresses a romantic interest in Siva. The friendship progresses and they eventually marry.
The stage is now set. Bhavani launches a set of sniper attacks on those close to Siva. Siva retaliates in kind and takes out many of Bhavani's leaders. Machiraju notices that Siva is launching a fitting response to Bhavani and decides to stop supporting Bhavani. Angered, humiliated and defeated, Bhavani strikes Siva's home.
A final fight ensues in which eventually, Siva manages to kill Bhavani, ridding the city of one of its most terrifying anti-social elements, while personally coming to terms with the fact that Siva kills Bhavani but loses Keerthi, his niece in the bargain.