The story is focused on four good-for-nothing friends, Ritesh Virani (Jackky Bhagnani), Puja Nigam (Puja Gupta), Nanj Nayar (Angad Bedi) and Vishnu Vardhan (Chandan Roy Sanyal). Three of them are always rejected from a administration to college, except Vishnu who is selected to St. Peter's College, the highest rated college of Delhi. Realizing his friends' troubles, Vishnu decides to quit St. Peters unaware of his dad knowing that he has.

The four friends decide to make their own college named "Fakirchand and Lakirchand Trust University (F.A.L.T.U)". They get Ritesh's childhood friend "Google" (Arshad Warsi) to help them by buying a building for the college. The three tell their parents they have finally been selected to a college, with Vishnu's dad still believing he works in St. Peters. Their parents come to see the college, and Google rents some fake looking students to make their parents believe they are real students. But some real students show up for an admission, and therefore Google creates the college and hires Bajirao (Ritesh Deshmukh) as the principal.

When the police investigate that it is a fake college, they are called to court. So they decide to get Google Chand to play as a fake lawyer. The four friends' parents fall out, except Ritesh's father, who supports him the whole way through. They then decide to do a talent show at St. Peter's College, where Vishnu's father (Akbar Khan)interrupts them while they are performing, and abuses as well as embarrasses them. That is when guest star Mithun Chakraborty enters, and explains the true meaning of learning, education, life and 'F.A.L.T.U'. Later on, after the show ends, all the parents realize their folly, embrace their children, and F.A.L.T.U finally becomes a real college.