Do Ghosts/Bhuta exist ?
Yes, probably they exist . It is described Ayurveda that our body is made up of five elements-
Agni-Vayu-Prithvi-Akash and Jal
Or
Fire-Air-Earth-Space and Water.
So our physical body is made of Prithivi or earth/soil, and other four bodies are present aside our body surrounding it. So all this five bodies need nurishment or satisfaction. When any of these five bodies are dissatisfied they become Ghost after death of this physical body. There is method to give satisfaction to all of this five bodies it is by
Yadnya karma
This is the reason most of Hindus perform yadnya in marriages and other public programs.
If ghosts exist how they possess a physical body ?
When your elemental bodies are not satisfied they become weak. So other dissatisfied elemental bodies of dead people take place of your weak elemental body. This ghosts are called
Sanskrit-Graha/Grahas
And there possesion over physical body is called
Graha badha
They are not as evil as shown in movies but they make life miserable which can result in suicide of victim or…