Palayam Murukan is an underworld gangster ruling Palayam market in Kozhikode, who hails from an aristocratic family and enjoys a good academic background, but unknowingly gets into the crime world during his college days. He was expelled from his house by his sister after he was arrested for a murder. In alliance with Mayor Swamy and assisted by the muscle power of his trusted henchman Dosth Vishwan, Murukan becomes the most powerful person of the city. His activities include mediating land contracts, arranging hartals for political parties and murdering for a cause.
On the personal side, he enjoys a deep rooted friendship with Dosth, and also sponsors his adopted sister on her medical studies and is loved by the people of Palayam market. Things take a turn when Murukan clashes with Swamy over a land contract. Murukan backs Moosa Settu while Swamy supports the syndicate of Hussain Haji and Thattel brothers: Mani and Bobby. Mayor arranges the murder of Moosa Settu. Nandita Menon, a young industrialist also joins with them against Murukan, though she is unaware of their motive. The syndicate manages to bring a new city commissioner for the city to tackle Murukan.
Jayamohan, who is known for his aggressive and arrogant ways of tackling crime gets into a direct fight with Murukan, where he creates many problems in the Palayam market, and arrests each and every one belonging to Murukan's gang, thus making Murukan try for violent retaliations, but Jayamohan, who discovers the soft side of Murukan, decides to turn him into a law-abiding citizen. Swamy and his group gets upset by this move. Nandita Menon also makes a truce with Murukan. Swami kills Dosth, which causes Murukan again to take law into his hands, where he finishes the crime syndicate by killing Swamy, Hussein Haji and Thaletti Brothers.
Trivia
This was the second script by Ranjith for Shaji Kailas after Rudraksham.
This was also the first Malayalam film of cinematographer V. Manikandan.
