Set in Banikhet, Uttar Pradesh, a young girl Biniya lives with her mother and elder brother. In the same village is a shop owner by the name Nand Kishore Khatri. One day while herding some cows in the valley, Biniya discovers an abandoned blue Japanese umbrella. The colours and design is so beautiful that Biniya immediately takes a liking to it and wants to keep it. She learns that some Japanese tourists have left it and offers them her bear claw necklace in return for the umbrella. They agree and the umbrella is now hers, however her mother is not happy about giving away the bear claw necklace as it is considered lucky and it brings good fortune to the person wearing it.
People are in awe of the beautiful blue umbrella and some even envy Biniya. Khatri likes the umbrella too and his shop boy Rajaram offers to steal it if he would like. However one day when Biniya is at the pastures, her umbrella goes missing and she is devastated. Khatri meanwhile who is accused of stealing it gets another red one and says he bought it from Delhi. Everyone now admires Khatri’s red umbrella. One day at an event it starts raining and the red dye from the umbrella washes off revealing it to be Biniya’s blue umbrella. The villagers abuse Khatri for such a deed and disown him. Feeling sorry for him Biniya decides that Khatri is the real owner of the umbrella.
The movie is directed by Vishal Bhardwaj, who also has composed the music, and it is produced by Ronnie Screwvala and Vishal Bradwaj.
