A group of friends, Ritesh (Jackky), Nanj (Angad), and Puja (Puja), all receive extremely bad marks in their exams. One of their close friends, Vishnu (Chandan), has passed with top marks under the pressure of his father, and has enrolled in the top high school of India.
To make their parents happy and proud, the four friends create a fake university titled "Fakirchand and Lakirchand Trust University" (F.A.L.T.U) with the assistance of Ritesh's childhood friend Google (Arshad Warsi). Things take a turn for the worse when the parents would like to see F.A.L.T.U. To make things go right, Ritesh and Google hire someone, Bajirao (Riteish), to act as the principal for one day. However, after the parents's visit, a bunch of kids apply for F.A.L.T.U, believing it to be a real university. Unable to send them back, the trio, along with Vishnu, Google and Bajirao, turn F.A.L.T.U into an official trust university. Soon enough, the government files a case against every student/member of F.A.L.T.U for creating a fake college. Now the group of friends must fight for their rights, and keep F.A.L.T.U as a university to give the kids an education. Near the end there is a song competition into which the trio, along with the college, sneak. As Vishnu's father is the one who had filed the case against them, it comes as something of a shock that, when the members of F.A.L.T.U finish their performance, he stands up and claps. (He did not know which college was performing because it was very dark.) The education minister asks Ritesh about F.A.L.T.U and what it was, in response to which Ritesh makes a speech about the education system and how F.A.L.T.U fixes it. In the end, the college is granted a license to function for three years as an official college, and Vishnu's father finally accepts the college along with him.
