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CI Shankar, who is also known as `Encounter Shankar`, gets posted in a small town called Bukkapattanam. This town is a troubled area because don Damodar rules the roost, threatening people to cooperate in his illegal business.
When Shankar arrives, he starts halting Damodar`s illegal business and in the process, finds out that Damodar had attacked his family and begins to plan his revenge. In the meantime, Shankar falls in love with Saroja, a sweet-shop owner. How Shankar finally puts an end to Damodar and his gang with the help of Delhi Suri forms the crux of the story.