Madhurey movie tells the story of Madhureyvel (Vijay) who is in the first half is Madurai a vegetable vendor along with his friend Pandu (Vadivelu). Madhureyvel is a do-gooder and protector of the family of Seetha and her two daughters. He eradicates loan sharks and fights "bad guys" in the market. The usual hero worship is shown and only a clue of a policeman saluting the vendor gives you an inkling of what is going to come.
Now Seetha’s eldest daughter Susheela (Sonia Agarwal) who was working with Madhureyvel was killed and mother blames it on Madhureyvel and shoots him down. Pandu now opens the story of Madhureyvel actually being the district collector of Madurai. He is the action packed bureaucrat who takes to the streets to solve the problems of the citizens. He does the job of policing too and is up against criminals. He does not believe in IPS and police force to clean up the city.
So one such clean up operation takes him to KTR (Pasupathy) who is running a parallel law enforcement system with his own court. Now Madhuravel does not take lightly to this parallel outfit . A clash takes place and Susheela then PA to Collector gets killed. KTR puts the blame on the Collector. Now the IAS officer goes underground to surface as vegetable vendor because his aim is to pin down the KTR and his outfit. From now onwards it isMadhureyvel on a rampage till KTR is finished and the murder charge removed.