Kannan reaches the safe custody of Kesavan and his wife Gayathri, who had no children. They have been living in Pazhani and after the arrival of Kannan they come back to their native place. Later Gayathri gives birth to a baby girl Meenakshi. Even after so many Kannan cannot forgive the deed done by Bhaskaran. His mind is prepared to take revenge over Cheenganni. During this time a girl Aarathi of Maalikapura Tharavad falls in love with Kannan. After some years Bhaskaran comes out of jail. Kannan tries to kill him. Bhaskaran pleads that he was not the murderer. There lies in the twist in the story.
Sajith Lal dons the role of Kannan . Other in the cast include Kalabhavan Mani, Jagathy Sreekumar, Jagadeesh, Anoop Chandran, Indrans, Mamu Koya, Bindu Panicker, Shobha Mohan, Roselin, Deepika, Valsala Menon and others. Salim Kecheri penned the script and dialogue. Priyesh George is the producer. Music by Priyesh George. Shyam Dharman has scored the music. Under the banner of Cinema Movies, Biju John and Priyesh George are the producers. Location is at Ernakulam, Kaladi, Pazhani and Aluva.
Gunda is the story of revenge. The story goes back to the cruelty of Cheenganni Bhaskaran. At that time the hero of the film Kannan (SajithLal) was ten years old. His mother and sister were killed by Cheenganni Bhaskaran and later their bodies were placed on the railway track to make it seem a suicide. Bhaskaran tried to harm Kannnan also, but he threw chilly powder on him and escaped.