Their story is framed as intermittent flashbacks from the present day, ten years after Chatur bet to become more successful than Rancho. Having lost contact with Rancho, who disappeared during the graduation party and went into seclusion, after five years, Raju and Farhan begin a jouey to find him. They are joined by Chatur, now a wealthy and successful businessman, who joins them, brazenly confident that he has surpassed Rancho and also looking to seal a deal with a famous scientist and prospective business associate named Phunsukh Wangdu. When they find Rancho's house in Shimla, they find a completely different Rancho (Jaaved Jaffrey). From him they come to know that their friend was a destitute servant boy "Chhote" who loved leaing, while he, the real Rancho, disliked study. After seeing the boy's intelligence, the family agreed to let the servant boy study in Rancho's place instead of labouring. In retu, the real Rancho would pocket the qualifications and after graduating, the servant boy will cease all contact. The real Rancho reveals that Chhote is now a school-teacher in Ladakh. At the same time, they find out that without Rancho, Pia decided to marry the same price-obsessed banker that Rancho initially talked her into dumping, and they go to rescue her from the wedding.

Raju and Farhan find Pia and arrive in Rancho’s school. Pia and the fake Rancho rekindle their love, while Chatur mocks Rancho for becoming a school teacher. He asks Rancho to sign on a "Declaration of Defeat" document. When Rancho's friends ask for his real name is, he reveals that he is actually Phunsukh Wangdu himself. Chatur finds out about this and is horrified; he accepts his defeat and pleads his case with Phunsukh to establish the business relationship he was after.