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Babji agrees for the wedding and, in turn, tells Chandrakala that she is to marry Bharat again. Then Venky tells Babji that his brother who is actually Babji's sister's husband and is acting as Venky's brother will marry his sister. But unexpectedly, they all come to know that the girl is pregnant and so Bharat refuses to marry. He tells Babji's elder sister to come back on the engagement day to act as if not married and Babji fixes the marriage of his elder sister with Bharat. He hires Hamsa Sippy (Hamsa Nandini), Sippy's wife, to act as his father, Meka Papa Rao a.k.a. He also comes to know that the reason Kesava Reddy wants to kill Chandrakala is that his younger sister committed suicide because she loved Babji although he did not reciprocate the same. Using the help of Nano Shastri (Krishna Bhagavaan), Venky manages to get Babji and Chandrakala into his house.

He also continues to search for whoever (Venky) abducted his sister. Babji readies Chandrakala to marry Bharath. He conducts an attack on her through which Venky comes to know that Chandrakala is actually Babji's second sister and that he had sent her with Sathya to Hyderabad to maintain a low profile. Meanwhile, Kesava Reddy (Mukesh Rishi), a politician is behind Chandrakala's life. Babji, unaware of the fact that he is traveling in Sippy's taxi, goes around Hyderabad with Boiling star Bablu (Prudhviraj), a rising Television star.

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Meanwhile, Babji comes to Hyderabad in order to reach Sippy (Brahmanandam), the driver who helped Venky kidnap Babji's sister. After her initial rejection, Venky gets her to reciprocate his feelings. Chandrakala rags other students in the college using her brother's power. There he falls for Chandrakala(Rakul Preet Singh), the sister of Sathya (Rahul Dev), a don in Hyderabad. He stays with his friend, Shyamala (Satyam Rajesh). He goes to Hyderabad and waits for everything in his home, Warangal to clear. Loukyam opens with Venky (Gopichand) kidnapping the sister of Babji (Sampath Raj), as she is getting married to Bharat (Bharath Reddy) although she is in love with someone else (Anand Ramaraju).

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