Hazari Prasad (Anupam Kher) is a miser who dreams of finding a rich girl for his only son, Raja (Aamir Khan), to marry. However, Raja is only interested in spending his father's money on wild parties.

One day as Raja is walking to the college he attends, a passing jeep douses him with mud and the rude response of the beautiful Madhu (Madhuri Dixit) who is driving enrages Raja. He tricks Madhu into thinking that he is blind and then mocks her when the truth is revealed. The two quickly become enemies and play different pranks on each other: Raja causes Madhu to trip during a dance rehearsal and she forces him into a fight with the school's champion boxer (which Raja wins).

Meanwhile, Hazari is looking for a girl with a large dowry for Raja, only to find that his involvement in the waste paper business makes his son a less than stellar marriage prospect. While visiting a lavish hotel, Hazari accidentally runs into a multi-billionaire, Mr. Mehra, who has only one daughter. Hazari hires actors to pretend to be his staff and gives beggars large quantities of counterfeit money in order to masquerade as a wealthy industrialist. He quickly becomes friends with Mr. Mehru and the two agree to marry their children to each other. However, when Raja meets his prospective bride, she turns out to be Madhu and the two refuse to consider the possibility of marriage.

Madhu takes her dislike of Raja too far on a weekend school retreat when she falsely accuses Raja of trying to rape her. Raja is furious that his reputation has been ruined and reprimands her for her dishonesty and thoughtlessness, pointing out that many men would take their revenge, but he is different. Madhu instantly falls in love with Raja and kisses him in front of her entire class. The two enjoy an idyllic holiday: however, when they return to the city for their engagement party, Mr. Mehru discovers Hazari's true financial circumstances. Furious, he insults and strikes Hazari who immediately takes offense. Raja and Madhu are forbidden by both of their parents to see each other again.