A distraught Rajeshwar and a sympathetic Veer finally sort out their enmity of decades. The people with whom Chuniya had dealt with attack Rajeshwar, exposing Chuniya's real face. However, Chuniya's luck doesn't last long. Radha and Vasu's pleas fall on deaf ears. Chuniya's machination works, exposing the lovers as well. He decides to stoke the fires once again, which he does by abducting, raping and killing a girl named Amla from Veeru's territory. He starts making murky deals with shady parties who are interested in acquiring the whole region. Meanwhile, Chuniya has completely infiltrated Rajeshwar's bastion. Aarti, Vishal's widow, learns the true identity of Radha but keeps quiet. The lovers succeed in doing so and try to make the old friends see reason. Then, he reveals his plans to end the enmity, according to which Radha will infiltrate Veer's home, while Vasu will infiltrate Rajeshwar's. When Mandhari finds about this, he happily completes his pledge to himself and reveals the truth to the lovers. Radha and Vasu are unaware of the enmity and fall in love. Here, Rajeshwar's granddaughter Radha and Veer's grandson Vasu meet each other. Mandhari claims to the Commissioner that the day he finds out a solution to the problem, he will dance on one leg. Mandhari, who is now revealed to be a beggar and part of the story, happens to be one of the lucky few who do not have any fear of death from either side. The clashes between the former friends become a headache for the Commissioner. Chuniya has Veer's son Vishal killed, making the latter believe that Rajeshwar will stop at nothing to eliminate Veer. Chuniya, kin of Raja, sees an opportunity to leech off the money of Rajeshwar by keeping the two sides at war. They come to an uneasy and unwritten truce: no one will kill a living soul from the other's territory, but anybody entering the other person's territory will be doing so at their own peril.
With these new developments, the duo has their territories marked. A devastated and distraught Raju now declares that Veeru is solely responsible for whatever happened and that the latter is now his mortal enemy. While Raju is shocked by this development, his sister, who was secretly in love with Veeru, commits suicide. Veeru steps in to save the face of the girl and her parents by marrying her. However, as luck would have it, a girl's marriage is disrupted due to her in-laws demanding dowry. Neither his sister nor Veeru have any objections to the marriage. As the duo grow up, Raju decides to get his sister Palikanta's marriage arranged with Veeru. They are naughty kids, calling each other as Raju and Veeru respectively. In the story, Rajeshwar Singh, a rich landlord's son, and Veer Singh, a poor farmer's son, become friends. The movie starts with Mandhari, an old crippled man, telling a story of two friends to some kids.