Nerku Nere movie tells Thampi (Nedumudi Venu) who is the aging sire of a feudal family and his wife Malathi (kalpana) had seen better days before the Land Reforms and the sweeping changes that followed in the social setup which transformed their lives. They now lead a spartan life, often raising resources by selling sundry assets or mortgaging land. Even then, they find it tough, to live up to their image of affluence, and generosity. One day under the influence of liquor, Thampi molests a village girl. Her husband and brother avenge this by killing Thampi. This turns Malathi's life upside down leading to several complications in her relationship with the outside world. Finally, she takes a strong decision, which frees everyone from the trauma of a strained reputation.