The gang of five — Gopal, Madhav, Lucky, Laxman and Laxman, again! are orphans who have been raised in Seth Jamnadas’ orphanage in Ooty. When they return to their orphanage to mourn the death of their mentor, they hear that an avaricious builder, Vasu Reddy and his associate, Nikhil have designs on the ashram and the adjoining plot owned by Colonel Chouhan. The jugadu gang decides to stall the builders. However, they realise that in their absence, some friendly ghosts too have started to reside in the area. Anna Mathew, who can talk to spirits, acts as the guide to the gang.
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