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The film begins in medias res, with a masked person being brought to the Central Jail in Chennai, India. When asked by a fellow-inmate for the reasons behind his imprisonment, the masked person replies that he is imprisoned for attempting to do good for the people. The unmasked person is revealed to be Sivaji (Rajinikanth). The story then winds into a flashback that shows him returning from the United States as a software systems architect to Chennai. He founds a non-profit trust called the Sivaji Foundation to build a network of hospitals and colleges to serve the poor. However, he faces the obstacles of corrupt civil service. Sivaji bribes his way through the system. Though at one stage, unable to deal with spiraling costs, he even mortgages his palatial house and personal property in the process. Adiseshan (Suman), an influential businessman, sees Sivaji Foundation as competition to his own business empire. Using his political strings, he repeals the permits issued to the foundation by the government. Sivaji approaches a lawyer, using his own car to pay the lawyer's fee. However in court he is forced to admit he bribed numerous officials. This undermines his case and the judge reiterates the stay order on construction by the Sivaji Foundation.

Meanwhile, Sivaji falls in love with a girl named Tamizhselvi (Shriya). Her family is initially scared and angered by the overbearing nature of Sivaji's family, though they eventually accede to Sivaji's request for Tamizhselvi's hand in marriage after a lot of persuasion. However upon asking for his horoscope; the astrologer predicts impeding doom leading up to Sivaji's death if the two are united. When Tamizhselvi refuses the proposal due to her concern for Sivaji, he calms her fears and manages to convince her to marry him.

Adiseshan insults Sivaji and gives him a one-rupee coin, challenging him to try beggary for survival. In an ironic plot twist using the very coin, Sivaji loots Adiseshan's bungalow and blackmails him to return his money. He then uncovers details about people who have substantial quantities of illegal money and then blackmails each of them, obtaining half of their illegal wealth. Upon transferring the money to bank accounts (owned by friends and contacts) around the world, Sivaji informs the Income Tax Investigation and Vigilance Department about the details of the illegal money held by the tax evaders (including Adiseshan),they are arrested by the IT department and brought to court. Sivaji's associates deposit the money sent across the world as donations to the Sivaji Foundation making the money legitimate and usable by the foundation. Sivaji begins to realize his dream of providing free, good quality education, services and employment to people in every district of Tamil Nadu. His adversaries seek to find out how he converted their illegal money to a usable form by threatening Tamizhselvi with danger to Sivaji's life. Fearing for him, she turns over his notebook PC with all the information regarding the various money transactions to the Income Tax authorities. With presentable evidence, Sivaji is arrested and the scene returns to the beginning of the film with Sivaji in central prison.

Adiseshan loses control when Sivaji refuses to open his laptop and assaults him in custody with a metal rod. In the process it seems Sivaji has died from the sustained injuries. To cover this up, Adiseshan organizes for thugs to shoot up the police van that will carry Sivaji's dead body. Making it look like murder by a third party. Sivaji however was merely faking his death, he was informed of the plans to kill him by a sympathetic police officer prior to the interrogation. Left alone in the room, he electrocutes himself. Dr. Chezhian (Raghuvaran) and Tamizhselvi intercept the police van (informed by Sivaji after he got the police man's own warning) and manage to cart away Sivaji's 'dead' body under the cover of a coach before the thugs could open fire. In Sivaji's stead they plant a dummy. While everyone believes that Sivaji is dead, Dr. Chezhian revives him using a defibrillator. After a few days when everyone wonders about the future of Sivaji Foundation, the revived Sivaji returns to take control over the foundation in a disguise of a friend, M.G. Ravichandran (N.T. Ranga Rao in Telugu, A. Bachchan in Hindi). Though Adhiseshan realizes that it is Sivaji himself, he is unable to prove this to the police due to the tangible evidence of Sivaji's death. Ravichandran promises to avenge Sivaji's death and eventually manages to corner Adhiseshan and challenge him. After their fight, Adiseshan is killed in a stampede. As a conclusion, the audience are informed of the foundation's success and fulfillment of Sivaji's dreams. An epilogue shows India becoming a top country in the future due to the Sivaji's plans.

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