Krishna (Nishant) is a college student who just enjoys life without any responsibility. Though his father (Tanikella Bharani) loses heavily in his business and is in a deep debt trap, he pretends as if he doesn't bother. But, he adores his lecturer Sarada (Jayasudha) who always supports the students. Sarada runs an educational institution called Sarada Academy, where the students are not burdened with the books and they are taught everything in a homely atmosphere. Sarada's nephew Priya (Rathi Pandey) once reaches Hyderabad from Vizag for vacation and Krishna accompanies her during the vacation, giving her good company. As he moves about in a friendly manner with Priya, she is mistaken that Krishna is in love with her. In fact, when Priya reaches Hyderabad, she is teased by his classmate and who tries to deface her by throwing acid, but himself gets the burns on his face. To come out from depression, Priya reaches Hyderabad. On learning about this incident, Krishna tries to keep her in good humour. At this juncture, Priya gets a call from her parents who have fixed her alliance with a boy from the US. But Priya reveals to that boy that she is already in love with Krishna. But when Priya proposes, Krishna refuses her love, saying that he was also in love with a girl called Radha (Melani). Radha is in her Intermediate when she falls in love with Krishna. As Radha's parents (Chalapati Rao and Sana) want to see her as a doctor, she completes her Intermediate with the first rank. As usual, GK (Ashokkumar) of GK Educational Institutions visits their house and offers her a free seat with accommodation in his hostel, and tells her to score a first rank in the Eamcet as well. But Radha, being in love with Krishna, is unable to cope, and fails to concentrate on her studies. She fails the examination only to get chidings from her parents and also from GK. Humiliated over the incident, Radha commits suicide. Feeling bad that Radha died due to the faulty education system, and that a lot of mental stress was the root cause for her suicide, Krishna decides to start a school which will be free from stress and other kinds of burden, like books and other things. However, GK decides to somehow take revenge against Sarada Academy as it was prospering better than his institution. With the help of a driver in Sarada Academy he plants a bomb in the academy. The film ends on a happy note, with Krishna removing the bomb, and saving the children. In the climax, Krishna accepts Priya's love.

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