In desperation, Mary decides to tell the truth to Gopalam and Ammi. To save their jobs, Rao makes up a far-fetched story that Mary is possessed by the soul of a Christian woman named after the mother of Jesus. Gopalam lies that he will marry Sita off to Rao. Raju, like Gopalam, is unaware of Rao's deception. In love with Sita, he wants to keep Rao away from her and turns to Mary for help in teaching music, which ends in disaster. At the end of their first month at the school, Rao and Mary receive their salaries and Mary repays her debt.