The next day Balu accepts Indu's love, but at the same time, Khan's rowdies kill Indu. Ghani and Indu eventually reach Agra, Indu's hometown, where it is revealed that Rajeshwari Devi is actually Indu's mother. Ghani finally moves against Khan, who tries to kill children in an orphanage. The flashback unveils the story of Ghani, who changes because of Indu, who, in turn, changes, getting courage from Ghani. When Khan arrives, he realizes Balu is none other than Ghani, who worked under him a few years back. Balu makes Nayudamma believe him by saving him from a planned bomb blast. On the other side, Balu, through Daasanna, tries to steal the documents of the Mahankali market, which are with Nayudamma at that time and are actually to be sold to Khan.
Shwetha dares to propose to Balu, but he rejects her love. The next day Shwetha comes to the hospital to visit Balu's mother and falls in love with Balu. She faints there, remembering her past in which her husband Ranga Rao and her son would be killed because they supported the people of Mahankali market in getting the rights on the land. One night Balu's mother walks to an empty bungalow.
As the story goes on, Balu meets Shwetha, but both start fighting with each other. Balu newly comes to the city with his mother Rajeshwari Devi, sister-in-law, nephew and friend. The people of the market get new hopes looking at Balu's style of impressing the rowdies. He impresses Daasanna by making him believe that he worships Daasanna's mother, thereby getting relieved of the taxes set up by Daasanna. At the same time, Balu sets up a new flower stall in the market. The story starts with a rowdy Daasanna, the follower of another uncontrollable, Naayudamma, warning the people of the Mahankali market.
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