Baba says that the only way to defeat the doll is to shoot him between his eyebrows. He approaches Baba and gets the truth about the possessed doll. Meanwhile, Mahesh gets the whereabouts of Baba Chamatkar's cave. Tatya attempts to possess Lakshya again, but Lakshya escapes just in time. All the villagers think that Lakshya is going crazy and forcefully hospitalize him into a mental hospital. Tatya still manages to dig his way out and scares Lakshya. In the morning Lakshya's lover Gangi takes Tatya out from cupboard and buries him underground, to cure Lakshya from his anxiety on the night's events. One night he climbs through the window and attempts to possess Lakshya's body, but Lakshya manages to lock him in the cupboard. Tatya goes back to Shrirangpur to gain the body of Lakshya. He understands to become mortal again he has gain the body of the 1st person whom he has told his name and that person is Lakshya. Baba disagrees to give him further knowledge, but Tatya threatens him and makes him tell.
Tatya reaches Mumbai in the Cave of Baba Chamatkar, where he asks him how to get transferred from a puppet to a mortal human body. Mahesh and Gauri confess to each other their love. Post-mortem reports prove the innocence of Lakshya and he is freed. Tatya rises from the evidence box and asks Lakshya about transport which would get him to Mumbai. In jail, Lakshya desperately tries to explain, but fails to prove his point. Just then, Mahesh comes in the scene and thinks that out of rage, Lakshya has killed the Sarpanch. An angry Lakshya goes to the Sarpanch's godown (warehouse), where he sees that the Sarpanch is dead. Lakshya gets home, only to find his house completely ransacked by Sarpanch's men. Tatya Vinchu shows his true identity and kills him. He takes all of Lakshya's belongings on the pretext of unpaid rent. Later, the Sarpanch of the village is insulted when Lakshya publicly makes fun of him. Tatya tells Lakshya that he is not a doll, he is a criminal. Lakshya has a talent of ventriloquism, and Gauri gives him a doll as a gift she got from USA, which happens to be the doll in which Tatya Vinchu's soul is trapped. In the meantime Gauri's father gets transferred to Shrirangpur.
Gauri (Kishori Ambiye) returns from USA to India for pursuing PHD in Criminal Psychology. Meanwhile, Kubdya Khavis is captured and taken into custody. He uses the mantra to transfer his soul into the body of a ventriloquist's doll lying nearby. There, they fight and Tatya gets hit by a fatal gunshot. Mahesh finds Tatya, and gives chase until Tatya hides in a post office. CID Inspector Mahesh Jadhav ( Mahesh Kothare), who is trying to arrest Tatya, raids his warehouse.
Tatya threatens Baba Chamatkar for his mantra. Tatya Vinchu ( Dilip Prabhavalkar), a famous gangster and his henchman Kubdya Khavis enter the cave of Baba Chamatkar (Raghvendra Kadkol) in search for mrutunjay mantra, a voodoo spell which can transfer the soul of the chanter to any living or nonliving object.
The film begins with a car approaching at night.