The film revolves around Vishal [Ajay Devgan], a stock analyst, and his wife Swati [Urmila Matondkar]. The two are in search for a flat in Mumbai. Vishal finds the perfect place on the 12th floor of a high-rise apartment building. However, the apartment has a horrifying past. The previous occupant of the flat, a young woman had killed her child and jumped from the balcony and died. Swati learns about this incident shortly after moving in and becomes oddly fixated with the story. Then, a series of inexplicable experiences drive Swati to near madness. Vishal becomes helpless and convinced his wife has developed some sort of psychological disorder. He consults a psychiatrist, Dr. Rajan [Victor Banerjee]. The couple''s maid [Seema Biswas] believes Swati to be possessed, and calls in an exorcist [Rekha]. Meanwhile, other seemingly unrelated events take place around the building. The watchman is being terrorized and murdered with his neck completely twisted [done by Swati], one of the residents Sanjay [Fardeen Khan] is behaving erratically, and a murder occurs. Inspector Liaqat Quereshi [Nana Patekar] is sent to investigate the murder at the building. All the while, neither the psychiatrist nor the exorcist make much progress with Swati. It is learnt that Swati was in fact possessed by the young woman who killed herself. For more help, Vishal goes to the womans mother [Tanuja]. With the mothers help, the possessed Swati lets everyone know that Sanjay was interested for a night with the previous tenant, and to save herself she jumped from her balcony, later Sanjay realises that her son had witnessed all and got the watchman to throw the little boy out from the balcony, and creating a fake story that the woman had killed her son and then committed suicide. By killing the watchman via Swati, the woman takes revenge for her sons death and now wants to kill Sanjay. At the last minute, the mother comes and tells her dead daughters soul that she cannot take revenge from Sanjay by making Swati a murderer [strangely here the movie fails to explain that Swati has already become a murderer after death of the watchman], so the woman leaves Swatis body and Sanjay is lifted above ground and thrown about in front of everyone, including Dr. Ranjan and Inspector Liaqat [who first ridiculed the story]. The story ends with Sanjay going to prison and the inspector insulting him, after Liaqat leaves, the ghost of the woman reappears and possesses Sanjays body and makes him kill himself.