Keeravani's father Sivashakti Datta is well known among film circles and the film lovers as a good lyricist. With several technicians already turning directors, he also wanted to try his hand in direction. With the help of an NRI producer, who also had an interest in producing films, Datta's urge to direct a film came out like Chandrahas.
The story of the film is beyond logic. Though it was claimed a socio-fantasy movie, it has no fantasy in it at all. There is a lot of graphic work in the film. Wires have been used extensively in action scenes in the film. The producer spent money a lot on the film.
Sivaji (Haranath) is brought up by his mother by telling him the story about Chandrahas. Chandrahas is the name of the sword given to Maratha warrior Chattrapati Sivaji (played by Krishna) by Tulja Bhavani. Hero Sivaji is one of the heirs of the sword.
In order to fulfill his mother's ambition to fetch the Chandrahas, he joins the archaeology department and begins a search for the sword. Sivaji is assisted by Apsara (Astha Singhal), who is a archeological script-reading expert. She helps Sivaji figure out that Chandrahas is at Vijayagadh. Parellely, a group of Muslim terrorists are out to wage war in the name of Islam (Jihad). They are led by Liaqat Ali Khan (Puneet Issar).