The film begins with crime lord Durga, who seeks justice for the needy affected due to the failure of the law & order system. Once, a victim approaches Durga, complaining a few manipulators molested his daughter. Durga wallops them, and a newly appointed cop, Bharadwaj, apprehends and acquits him in minutes. On the way, Durga notices his old flame, Anitha, and moves backward. During their college days, the two are lovebirds. Anitha is a journalism student and an idealist, while Durga is the brother of hoodlum Mohana Krishna. She agrees to marry him, provided he should never take his brother's path, which he promises to do.
Meanwhile, Gurunarayana, a wicked corporator & arch-rival of Mohan Krishna, assassinates him for political gain. Enraged, Durga skillfully slays the assailants of the crime and gains control over the city. However, Sarkar escapes as he has been released from prison to cover up the situation. Knowing this, Anitha breaks up with him because she is against his rationalist way. As of today, Anitha is a sincere journalist who always fights to expose inequities, irregularities, & evils in society, and she knits Bharadwaj. Gurunarayana grew up as an MLA for the ruling party. Besides, Durga's cousin Chitra has one side of her feelings and always supports him. Now, Durga also focuses on his political career, and Gurunarayana releases Sarkar from jail to bar him. Then, the power game begins between the gangs. Soon after, Sarkar attacks Durga in the film theater, in which many die. It severely impacts Anitha, who decides to reveal the truth. She meets Durga and tries to mend his ways, but he keeps a deaf ear. Later, she shows her past relationship with Durga to Bharadwaj.
Currently, Durga learns Sarkar's whereabouts and attacks him when he escapes. Durga is behind Sarkar, but he backs off while observing Bharadwaj. Simultaneously, Anitha takes Gurunarayana's interview regarding the chaos at the film theater. At that point, Sarkar reaches Gurunarayana's residence in front of Anitha, and Bharadwaj chases him. Gurunarayana tries to cover up the scene when a brawl arises between Bharadwaj & Gurunarayana. Anitha struggles to reveal the truth, but her editor always hinders her. Afterward, Gurunarayana plots and abducts Chitra when Durga rushes for her rescue. Therein, he is incriminated in a crime and seized. Bharadwaj is about to produce a witness against him, whom Gurunarayana has slaughtered. As a result, infuriated Bharadwaj charges Durga and imprisons him.
The next day, Gurunarayana schemes to become Chief Minister by collapsing the government, for which he conducts high religious riots that leave severe destruction. In these revolts, Bharadwaj encounters henchmen of Gurunarayana. On that note, Gurunarayana berates the department when Bharadwaj slaps him, and he seeks revenge. After facing several consequences, Anitha covers up the incident and submits it to her editor. But he turns out and surrenders all the evidence to Gurunarayana.
At present, Gurunarayana plans a self-bomb blast to gain sympathy on the eve of Ganesh Nimarjan. Alongside, the Police department receives intel regarding Gurunarayana's conspiracy, so to impede, they free Durga and enlist his aid. Bharadwaj is assigned the task of controlling the furor at the event when Gurunarayana announces to Anitha that he intends to kill her husband. Thus, she seeks Durga's help and arrives at the ritual with Chitra. Sarkar plans the bombing from an enclosed movie theater. Durga & Bharadwaj sense it and successfully block him. Gurunarayana also enters the hideout to execute the plan when the bomb explodes at a safe distance without harming people. At last, Durga & Bharadwaj are in a safe space, Sarkar dies, and Gurunarayana is severely injured and sentenced later. Finally, the movie ends with Anitha thanking Durga, and he decides to take a new path.
The film's story was written by Ram Gopal Varma and Mani Ratnam together, which is inspired from the book The Godfather. Varma faced financial troubles after the failure of Antham and Raatri and was also producing Money that time so he approached Surendra to do a film for his company which eventually became Gaayam.[1]
Varma decided to do Gaayam with Jagapathi Babu after he was impressed with a fight sequence he did for the film Peddarikam.[3] This was the first film that Jagapathi Babu dubbed for himself.[4] The initial version of the script did not have the character of Chitra, it was Ratnam who suggested this character while also suggesting Urmila Matondkar for the role.[3]
The song "Alupannadi Unda" was shot at R. K. Beach and Jagadamba Theatre while the climax was shot at Vikranth Theatre in Hyderabad. The choreography of the song "Cheli Meeda" was done by Urmila herself.[1]
The soundtrack was composed by Sri, son of composer Chakravarthy in his debut.[5] Lyrics were penned by Sirivennela Sitarama Sastry. Music released on Surya Audio Company.
The film's success established Jagapathi Babu as one of the popular actors in Telugu cinema.[1]
Sequel
After the film's success, Ram Gopal Varma and Jagapathi Babu planned to release a sequel titled Gaayam 2. Ram Gopal Varma was the producer in the sequel while Praveen Sri was the director. Vimala Raman was the heroine as Kota Srinivasa Rao again plays as the antagonist.