Shararat revolves around Jiya (Shruti Seth), who is the great great great great grand daughter of Rani Devi (Daisy Irani). It opens with Jiya celebrating her 18th birthday and unknowingly, is now the wielder of supernatural powers. Jiya lives with her family: her father Dr. Suraj Malhotra (Mahesh Thakur), her mother Radha (Poonam Narula, later Eva Grover), her brother Jai and her maternal grandmother Sushma (Farida Jalal). Apart from this, there are Jiya's college friends and acquaintances such as the stud basketball player Dhruv (Karanvir Bohra) - on whom Jiya secretly has a crush. Dhruv returns her ardor, while Parminder (Simple Kaul) (or Pam, as she yells at everybody to call her), the latest NRI entry in the college, threatens Jiya that she will grab all of Dhruv's attention; Meeta, her starry-eyed and romantic best friend and Raja, Dhruv's best friend who is always irritated with Meeta running after him. Pam is also the niece of Shanti Saberwal (Shoma Anand) - the classic neighbour of Malhotra's - who is convinced that everything is not normal with the Malhotra household and who always goes there to borrow something or the other. Shanti has a son named Bittu who sometimes teases Jia's brother Jai. The Malhotra home with three fairies who use, or rather misuse, their magic nearly always ends up in some trouble. Suraj, who learnt on his wedding day that not only his wife, but also his mother-in-law is a fairy, has to deal with his mother-in-law who insists that her daughter and grand daughter practice magic for almost everything. Midway through the series, Bebo, a 10-year-old fairy, is sent to live with the Malhotra family as she is causing mischief everywhere in Paristan, the world of fairies. Normally, a fairy cannot use her magical powers until her 18th birthday, at which Rani Devi sprays a few drops of magical potion on the fairy, thereby releasing all her magical powers. However, Bebo accidentally fell in the entire pot of potion, and that's why she can do magic when other underage fairies cannot.
In season 4, the Malhotras move into a new house, which is haunted by four stupid but paranoid ghosts: Colonel Pritam Singh, who used to attend Sushma's college and has a crush on her since then; his son Amar Prem (Sooraj Thapar), whose life ambition has been to get 1000 customers to make life insurance with him; Amar's wife Pritika (Delnaaz Irani), who wants to become a vamp (an antagonistic actress in soap operas); and their son Nidar, who has developed a crush on Jiya. The ghost family had died whilst holidaying in the Malhotra house, and hate the family as they do not want humans to stay at the house, which they now call theirs. They play many pranks on the Malhotras, and the Malhotras in turn use their magic to annoy them, with both parties trying to force the other to leave the house forever. The story ends with Dhruv returning from Australia. He proposes to Jiya and they get married after learning that she is a fairy and live happily ever after.