The plot of the movie is broadly similar to Twain's The Prince and the Pauper. Two boys are born on the same day. One is Rahul Mehta, born with a silver spoon in his mouth to a rich family in England; another is Baalu, born in a middle-class Brahmin family somewhere in Mumbai. Both grow up until they are destined to exchange places on their 22nd birthday. Rahul's parents died when he was young, and he lives with his grandfather Shambunath Mehta. He wants to visit India to see his parents' graves though his grandfather doesn't want him to go. He is afraid Rahul may fall in love and ruin himself as his parents did. With much persuasion, he comes to India and manages to escape his guardians, Ram Singh and detective Mirchandani, at the airport and catches a taxi. The driver of the taxi is none other than Baalu who, not knowing Rahul's true identity, keeps cursing the rich guy for being born on the same day as him and enjoying the wealthy life. Later, Rahul discloses his identity and Baalu feels ashamed, but both become good friends. Rahul does not want to go back to his wealth-ridden world, so he asks Baalu to take his place and let him take Baalu's place. So Rahul becomes the taxi driver and informs Ram Singh that someone will be coming to them in his place. Baalu reaches the hotel, and Ram Singh has a tough time grooming Baalu to behave like a rich guy. Rahul goes to Baalu's place where he finds Baalu's sister Paro and falls in love with her. Baalu, while attending a meeting with one V.P. Mathur, who is the caretaker of Mehta Industries in India, meets Mathur's daughter Pooja and falls in love with her. Mehta industries are in shambles because of corrupt managers. The union leader Dattabhau explains this to Baalu. Baalu takes care of this and reopens the company, declaring equal profit sharing among labourers. At the Shastri's place, Paro's father P.V. Shastri comes to know of Rahul and Paro's love affair and is enraged since Rahul is a Christian. Baalu comes into the picture and pacifies the situation. Rahul decides to turn into a Brahmin so that he can marry Paro. Rahul's grandfather in England learns what is happening with Rahul and comes to India to control the situation. However, since the control of Mehta Industries has gone out of the Mathurs' hands, they decide to kill Rahul and Shambhunath. Rahul and Baalu fight to save Shambhuath from the gangster hired by the Mathurs to kill him.
The film, upon release, gained highly positive reviews not only for its script but also for its performances and music. Though made on a modest budget and with newcomers, the film raked well at the box office and was declared a 'HIT'.
