Director M. Padmakumar's latest film Parunthu opens with the mass suicide of a family due to the harsh dealings of Parunthu Purushottaman (Mammootty), a 'blade' mafia chief having a particular affinity towards money, operating in Kozhikode city. But Purushu's heart is least moved by the mass suicide; he does not believe in any form of relationships since his mother abandoned him at a young age, leaving him to grow up as the right-hand man of a moneylender, Kunjikka (Mamookoya).
Purushottaman continues to thrash other families who are unable to repay the loans they took from him and to drive them out of their properties. The latest in his list is a Gujarati businessman Hemanth Bhai (Jagathy Sreekumar), who is on the verge of big losses due to pending court cases.
Hemanth Bhai fails to return the money and is threatened with dire consequences on the eve of the marriage of his elder daughter Rakhi (Lakshmi Rai). Purushu halts the wedding; this leads to Bhai losing his mind and finally surrendering his life.