The film begins with a wealthy, conjoined joint family. Advocate Kutumba Rao is his paterfamilias, an introvert & oblivious. He resides with his wife Annapurna and their progeny. Ramanaiah, his younger brother, looks after their farms in the village with his virago wife, Anasuya. Besides, Kutumba Rao raises his cousin Satyam, an idealist who knits benevolent Susheela, and they have a son, Babu. Annapurna & Susheela share more than just a relationship. Annapurna is very fond of Babu, whom she rears above her own. Since she is ailing, Susheela takes up the family tasks and operates them disciplinarily.
After civilizing, Satyam was appointed in their rice mill, led by his venomous distant relative Vaikuntam. Soon, he resigned, being unable to tolerate fraud therein. On the eve of Dasara, they invite Ramanaiah's family when Anasuya envies Susheela's esteem. Ergo, she slowly sows vicious seeds in Annapurna, creating a rift that makes Satyam's family quit, and they walk to the village. Now, Anasuya clutches the household authority and usurps the entire wealth. Parallelly, Vaikuntam entraps Ramanaiah via his amour Navaneetam and addicts him to all vices.
Following his ideals, Satyam cultivates barren lands with Susheela, associates with all the jobless peasants, and conducts communal agriculture. Besides, Ramanaiah & Vaikuntam spoiled the total heisted by Anasuya. They also snatched the amount of a client, Tirupataiah, by forging Kutumba Rao’s signature, which is about to be claimed. After learning it, Satyam clears it by mortgaging Susheela’s jewelry to shield his brother’s honor and handing over the counterfeited document.
Meanwhile, Anasuya’s intrigues break out when Annapurna becomes angry and collapses, making Anasuya reform. It is time for harvest when Ramanaiah & Vaikuntam plot to grab it on behalf of Kutumba Rao. Satyam hinders it, and the government seizes the crop when he summons Kutumba Rao. Being incognizant of the fact, enraged Kutumba Rao heads to the village, where he rebukes and is about to neck out Satyam. Simultaneously, Ramanaiah & Vaikuntam covetously try to destroy the proof but are caught. At that point, Kutumba Rao comprehends the virtues of Satyam & Susheela, welcomes them back, and permanently allocates their lands to the farmers. At last, they return home when Ramanaiah’s family is to exit, and Susheela changes their intention. Finally, the movie ends happily with the family’s reunion.
After the success of Donga Ramudu, its producer D. Madhusudhana Rao wanted to continue its success streak by again collaborating with Nageswara Rao and wanted K. V. Reddy to direct the film. However Reddy was busy with prior commitments and suggested Adurthi Subba Rao as director. However Nageswara Rao claimed it was he who suggested the name of Subba Rao as the director.[3]
Being an avid fan of literature, Madhusudhana Rao bought the rights of the Bengali short novel Nishkriti by Sharat Chandra Chattopadhyay. He wrote the screenplay along with Acharya Athreya and Subbarao by retaining the major characters and situations from the original novel while also making changes to suit local sensibilities by bringing changes such as changing character of second brother from lawyer to caretaker of agriculture fields. The film was simultaneously made in Tamil as Enga Veettu Mahalakshmi with the same lead actors and slightly different supporting cast such as Thangavelu and Nambiar replacing Relangi and Jaggayya.[2] Atreya and Sridhar wrote the dialogues for Telugu and Tamil versions respectively. Most of the filming was held at Janapastram, a village near Gudur.[2][3]