Life is an exciting drama and all human beings are mere players in the greatest production. Human life allocates value to relationships. Apart from our closest circle of relatives and friends, we get to meet a lot of people in our lives. Among the diverse lot, some remain with us as our friends and due to certain differences, some become our foes. Indira Vizha deals with the consequence of such a tainted and embittered relationship.

Santosh (Sreekanth) is a cheerful young man who works as a programme executive for a local TV channel. Hard-working and full of vigour to grow in the competitive world of entertainment, Santosh is always on the look out for ideas to enrich his presentations. Santosh meets Savithri (Hemamalini), a bright young Law student through one of his innovative programmes titled 'Asadu No. 1'. Working in close association, both of them get to know each other and fall in love. Subsequently, their love gains acceptance from their respective families and soon, the wedding gets finalized. Meanwhile, the channel's owner suddenly decides to transfer the management responsibilities to his wife Kamini (Namitha). Kamini is pretty, wily and adventurous. Soon, she takes charge of the channel's activities and in connection with the same, meets Santosh. The meeting shocks Santosh and Kamini.

In the flashback that follows, Kamini and Santosh are shown as two bubbly youngsters madly in love with each other. When Santosh brings up the matter of an early marriage, Kamini does not concur. Fiercely ambitious, she prefers to settle down in her career well before familial responsibilities envelop her. Disappointed and confused and not knowing how to convince Kamini, Santosh drops his decision and soon, work takes him away from the city; her career distracts Kamini. Thus, both of them drift apart and away from each other.

Cut to the present: Kamini is excited to see Santosh in her domain. His nearness excites her and caught in the daze, she decides to pull Santosh into her web and seduce him. Even knowing that he is engaged and soon to be married, she flirts with him using her position and power and in one vulnerable moment, tries to make a big move on Santosh. Realizing that Kamini is trying to transform the friendship into an extra-marital affair, Santosh tries to wriggle out of her hold. But cunning and result-oriented Kamini chases him and when he continues to put her off, she uses a wicked plan against him. Kamini files a complaint against Santosh for attempting to rape her. The scandal wrecks Santosh's reputation as well as his understanding with Savithri; friends and relatives look down at him. Insulted and hurt, Santosh takes the matter to court. So many twists and turns follow; is Santosh finally able to prove his stand? Does he escape from crafty Kamini's traps? Does his marriage pass the endurance test? How does Savithri react to the whole episode?