Jaidev Verma (Aftab Shivdasani) is a famous poet who lives the life of a loner as he is unable to meet the love of his life, Smruti (Tia Bajpai). They got to know each other through an exchange of letters and slowly fall for each other. One day, Jaidev receives a letter informing him that Smruti had an accident and has died. Now his sister Karuna (Vidya Malvade) is his only support system who keeps him motivated. One day Jaidev finds an unconscious girl near a lake and brings her home. After returning to her senses, she is not able to remember anything from her past life except Jaidev''s poems. Karuna becomes skeptical of her presence in the house and gets even more so when the keeper of the cemetery warns them of an evil spirit in her.
But Jaidev is insistent on keeping her at home since he feels a connection with her. He even names her Sangeeta. Strange & spooky things start happening with Sangeeta like vomiting iron nails and seeing ghosts in her room. On their way to see a doctor, Sangeeta gets completely possessed by the ghost. Now to save her, the only person Jaidev can turn to is the cemetery keeper. Slowly Jaidev gets to know that Sangeeta is actually his lost love Smruti. So he went to Smruti''s old address to find the truth. But there he discovers that Karuna had come there before, asking about Smriti. Jaidev returns home and finds that Karuna is missing; he finds Karuna''s body hanging in the forest with suicide notes around it. From Karuna''s letters he comes to know that his best friend Amar (Sharad Kelkar), who was always jealous of Jaidev''s success, exploited Karuna to get his revenge. When Amar discovers that Jaidev loves Smruti, he goes to Smruti, posing as Jaidev, and takes her to Shimla and tries to exploit her, but in the process Amar dies. Now Jaidev takes possessed Smruti to Shimla to face the final battle of good and bad.
As they are preparing to take Smruti, the cemetery keeper warns Jaidev that the spirit possessing Smruti is very vengeful and has to be deceitfully taken to the same place i.e. Amar''s residence, and when once Smruti touches Amar''s corpse, even unwillingly, the spirit of Amar will have to leave Smruti''s body and return to Amar''s corpse; then the corpse can be set on fire, releasing Amar''s spirit from this karmic cycle of life, death and after death and attain nirvana. Whilst doing this Smruti must not know where she is being taken, else the spirit residing in her will also know, and may try to flee from the spot, so she is made unconscious and completely enveloped in a sacred cloth from head to toe, while maintaining complete preparedness of not letting cloth move from Smruti''s face. Eventually they reach the designated place, but as fate would have it, the cemetery keeper topples on old broken flooring and so drops Smruti''s unconscious body, moving the sacred cloth away from her face, awakening the spirit in her. The possessed Smruti unleashes bloody mayhem on all four persons incl