Haunted House is based on the story of a Rajasthani folktale about a witch named Kaalo, who was killed and buried by angry villagers of Kaligarh 600 years ago. Villagers believe Kaalo's ghost looms over Kaligarh village.The village has been deserted because the villagers feared that Kaalo's ghost may return to take revenge. In the film the witch targets Young Sweeny's character and is thirsting for her blood.

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