Balachandran's eldest sister Shobha does some tailoring and manges a low earning with which the family is kept out of hunger. Not withstanding the family chaos Balachandran's younger sister Shubha walks out with Adivasi leader Sreedharan, causing irreparable damage to the family reputation. Following this incident his mother dies, and he is forced to forget his murappennu and childhood playmate Sumitra and is compelled to marry Surabhi a girl from a rich family, to tackle the serious economic adversities that his family faces. Sumithra who forces Balachandran to risk their dreams for the sake of his family finally marries a cruel and corrupt police officer.

At this juncture Balachandran gets a job at the Secretariat. He deliberately pretend himself as a bachelor which gives space for Nirmala to make a try in his life. Balachandran manages the situation well and with the help of Nirmala, he climbs the ladder of beaurocracy in a rather speedy way. Vaasthavam traces the growth of Balachandran, from a lowly clerk to a position to an ultimate beaurocrat who can control every sectors of administration of the State.

The film with a gripping story line  provided by Babu Janardanan, features Prithviraj as Balachandran. The film has three heroines - Kavyamadhavan as Sumithra, Samvrutha Sunil as Surabhi and Sindhu menon as Nirmala.

The other prominent stars in the movie includes Murali, Jagathy, Jagdheesh, T.G.Ravi, Sreeraaman, Madhupaal, Salimkumar, Soorya, Sona Nair and Manka Mahesh.

The music department of the movie is handled by Girish Puthenchery and Alex Paul. Manoj Pillai wields the camera while L. Bhoomidhan does the editing. The film produced in the banner of Sreechakra films is in its last phase of shooting at Kochi and Thiruvananthapuram.