At a visit to the cinema before collecting Margaret and Sophie from the airport, Estha is assaulted by a paedophile refreshment vendor. He is overcome with feelings of guilt and shame. Rahel says some careless words to her mother, Ammu, who tells her that careless words make one love the speaker of them a little less. This idea horrifies the twins who are especially devoted to their mother following her divorce from their alcoholic father. .
When the twins arrive back at the house after collecting Sophie Mol and her mother, they separately slip away during the welcome proceedings. Rahel just steps out of the play', as she sees it, to greet Velutha, an Untouchable employee of the family firm with whom the twins have developed a very close friendship. As Rahel climbs onto Velutha's back, he meets the gaze of Ammu and they suddenly have a strong desire for each other. .
Estha goes to the factory where he has three thoughts: a) anything can happen; b) It's best to be prepared; c) a boat. When he and Rahel subsequently find a boat, Velutha repairs it for them and they use it to cross the river to reach a long-abandoned house in the middle of an overgrown estate. On the veranda of the house they prepare a home from home by taking some of their special things and some food. What they do not realise is that on the night of Sophie's arrival, Ammu and Velutha start an affair "scandalously ignoring their caste distinctions. At night the two of them use the twins' boat to reach the same veranda. .
After a couple of weeks, Velutha's father visits Mammachi, the family matriarch and Ammu's mother. Drunk and distraught, he tells Mammachi of the affair and offers to kill his son to redeem the shame that has been caused. Ammu's bitter, spiteful aunt, Baby Kochamma, locks her in her room. In her rage Ammu shouts at the children to go away. Already worried that she might love them less than she did, they decide to run away to the veranda of the old house.