Lelam movie starts with Anakattil Chackochi (Suresh Gopi) arranging a smuggling deal with a Tamil spirit dealer for funding a dowry payment for his friends sister. The deal sparks of a argument between the two until the Tamil dealer realises him as the son of Anakattil Ipachen who is a longtime friend. After finalizing the deal they head of to Kerala with the Tanker Truck when they are caught in a Police checking. Anakatil Chackochi then faces the tough Police officer only to find they are friends from the Army.
The story then revolves to take a turn showing the feud between Annakatil Ipachen and his enemies Kadyadi Baby (Sphadikam George), Kadyadi Raghvan (N.F. Varghese) and others who want him dead as he is capturing the latter's business. After a verbal confrontation with the enemies in which he humiliates the enemies Anakatil Ipachen is stabbed to death from behind by Kadyadi Baby.