Shankar is an orphan raised by a sincere police officer named Raja Rao. His son Bharath accidentally kills a kid and Shankar takes the blame on him. Shankar is imprisoned and Raja Rao warns him not to meet him again. After graduating, Shankar is employed as a circle inspector of police. He is popularly referred to as ‘Encounter’ Shankar because of his track record as an encounter specialist.
He is transferred to Bukkapatnam town in Tadipatri, Ananthapur district. He is assigned the task of halting the illegal businesses of Damodar, an influential crime boss whose dream project is to build a power plant. Using his wits, Shankar destroys all the three main businesses of Damodar by trapping their respective in-charges. He brings a stay on the power project by bringing few vital witnesses before the court of law, thereby earning Damodar’s ire. On a parallel note, Shankar loves a sweet shop owner named Saroja who reciprocates her feelings at a later point of time.