Ramu was a truck-driver and his cleaner Raju called him "Ramu Ustad" and so the others followed suit. Ramu had an old mother and a younger brother Shyam who was studying in the city. Shyam had no heart in making a carrier for himself or turning into a bread-earner for the family. He had been keeping bad company all the time and was frittering away the hard-earned money his brother was sending him.
Madan, the Jagirdar was a rival of Ramu's father and was responsible for the death of Ramu's father. He kept on trying to liquidate Ramu too. While returning from Ram Leela,
Madan's men attacked Ramu but Ramu gave them a nice beating. Usha, Madan's daughter was a witness to this incident. She fell in love with Ramu on account of his bravery.
She even publicity garlanded him.
This was a grave insult of Madan. He dragged Usha home and admonished her for this action.
The victory of Ramu was also celebrated by his friends and well-wishers Usha also danced and even slept that night in the hut of Ramu: This further enraged Madan.
In the city Shyam tries to reform himself. He left the smuggling ring run by no other than Madan. Madan's men try to kill him by faking an accident but they fail. Ultimately Shyam is brought before Madan. Madan pardons him on one condition. He should kill his own brother Ramu. Shyam fails to keep his word. Madan orders his henchman Gupta to liquidate Ramu. He accepts the assignment on one condition that he will kill Ramu alright but have Ramu's sweet-heart too. To which Madan doesn't object. Gupta thinks he has killed Ramu but Ramu escapes. He kidnaps Usha. This dawns on Madan when Gupta tries to molest her.
Gupta turns Madan's enemy. They had a fight in which Madan is killed. Ramu was set free from the clutches of Gupta by his cleaner Raju. Did Ramu and Shyam again lived as brothers ? Did Ramu and Us ha unite despite the fact that her father was the killer of Ramu's fat her ? All this will remain shrouded until, dear patrons you see "Ramu Ustad" yourself on the screen.
(From the official press booklet)