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Siddharth () and Avni (), the son and daughter-in-law of Badri's elder brother, return to their native village from the and decide to stay in their ancestral palace. This leads to Siddharth's childhood love interest Radha (), who is Badri's adopted daughter, becoming jealous but she immediately recovers.
Siddharth is crowned as the king, his right to the throne. The palace where Siddharth and Avni were staying was once occupied by Vabuti Narayan, who was Siddharth's ancestor. He had fallen in love with Manjulika, a dancer hailing from.
But Manjulika was in love with Shashidhar, another dancer, who resided in a house just behind the palace and often met her secretly. On the night of Durgashtami, when the king gets to know of the affair and their plan to elope, he calls them to perform a dance one last time in the court. In the end, the king beheads Shashidhar and imprisons Manjulika in her room. Then on the day of the king's marriage, Manjulika hangs herself and swore that her spirit would not leave any king who lived in that very palace. Various omens started taking place after that, presuming that the ' may have befallen on the king.
The king too dies under unknown circumstances. Soon, with the aid of powerful sorcerers, both Varydat's and Manjulika's spirits were locked up in a room in the third floor of the palace using a sacred talisman. Events take a twist when Avni obtains a copy of the third floor room key and opens the forbidden locked room that contains the ghost of Manjulika. Unnatural events start taking place inside the palace.
Avni falls in love with the place and learns about Manjulika and her tragic story. She becomes enamored with Manjulika. Badri and Batuk Shankar () try to ward off the evil eye with the help of a priest, Shri Yagyaprakashji Bharti (), but unfortunately the priest has gone to and is unsure when he might return. Siddharth starts suspecting Radha for all the strange occurrences. He thinks she has gone crazy since he was supposed to marry her, but married Avni instead.