The film tells the story of a young man named Anand (Salman Khan), who was deeply in love with a girl named Maya (Rimi Sen), who was intentionally thrown into a swimming pool by her fiance for the sake of getting back at her pranks. Apparently, she drowned. After Maya's death, Anand's life is completely shattered and he becomes insane.

He is brought to Sir Richard's Mental Sanatorium. His brother requests the doctors to admit him immediately. However, they insist on evaluating his mental condition before taking any decision. On being asked a few questions, Anand does not show any signs of insanity, and the doctors conclude that there is nothing wrong with him. They decline to admit him to the hospital. Just then, Anand spots a housefly on the table. He first tries to capture it in his palm, but it evades him. While Anand's elder brother is arguing with doctors to admit him, Anand suddenly becomes very violent, picking up a club and using it to hit everything the fly lands on. He finally manages to kill the fly. This convinces the doctors that he is indeed insane, and they finally agree to admit him.

Anand is admitted to Sir Richard's Mental Sanatorium, where he tries to makes friends with other inmates. One of them claims to have bought the Taj Mahal, another claims to have a tree growing sweets, and so on. This sets the scene for the entry of the chief doctor, Dr. Khurana (Om Puri). Dr Khurana is livid that a nurse had come into the operation theatre even though he had forbidden it. He yells at the matron and refuses to accept an explanation for the action of the nurse. At the mental asylum, there are also other two main doctors, Dr. Sunil (Jackie Shroff) and Dr. Tanvi Khurana (Kareena Kapoor), Dr. Khurana's daughter.