Indian cities are being terrorized by a group pressing the government to concede to their demands. Honest, experienced, and diligent cops Abhay Singh Om Puri and Abbas Lodhi Naseeruddin Shah are part of the anti-terrorism task force formed to neutralize the threat.
Abbas Lodhi decides to infiltrate the terrorist group with two undercover cops, Sahadev and Shakti, who assume the identities of Anand Manoj Bajpayee and Shiv Milind Gunaji, respectively, to gather information. Only Abbas, Abhay, and their senior officer in New Delhi know about this operation.
Anand, one of the undercover cops, is exposed by the terrorists a few years later. However, he dies by consuming cyanide before they can extract any information from him. But Shiv earns the trust and respect of everyone in the gang, including the mastermind Commander Bhadra Ashish Vidhyarthi.
Bhadra is captured and tortured by the police. But try as they may, he does not reveal anything to Abbas or Abhay. While Bhadra is in jail, the gang chooses an RPG (Rocket Propelled Grenade) expert to kill a minister, and he succeeds. But the assailant is apprehended and interrogated by Abhay. But Inspector Tiwari poisons the prisoner.
Soon, a respected officer, IGP Pathak Amrish Puri, who is a friend of Abhay and Lodhi, kills himself when the CBI comes to arrest him on charges of being linked with the terrorists. Abhay and Lodhi then realize there are many terrorist-allied infiltrators. Now Bhadra offers Abhay the chance to join with and help the terrorists, or else his family will be in danger. Abhay does not oblige. The terrorists kill the family dog, shoot Abhay's son in the leg, and send him threatening messages.
Abhay finally agrees. Bhadra asks Abhay to feign a kidnapping and allow him to escape, which he unwillingly does. Lodhi is shocked at Bhadra's escape and does not understand why Abhay is acting strangely.
Now outside, Bhadra sends two people, Surinder Annu Kapoor and Mala, to stay in Abhay's house, and asks the latter to accommodate them. The two of them keep Bhadra informed and threaten to kill Abhay's wife and child if he were to try anything funny at any time. Only Abhay knows their true identity.
Soon Bhadra meets Abhay, and under threat of his wife and child being killed by Bhadra's signaling to the couple at their house, Abhay reveals that it was Lodhi who had arranged for two undercover cops to be sent to the gang, and only he knows who Dhanush really is. Abhay also learns that Inspector Tiwari, who was supporting Bhadra, has been eliminated.
The gang attacks Lodhi. He is beaten, but he does not reveal who the inside man is. Soon he is killed accidentally by Bhadra's pistol. Abhay tells everything to Sumitra Mita Vashisht, who reminds him that, as a police officer, he has taken an oath to protect the nation, and he must stand by it. She also vows to take care of everyone and everything in his absence.
Consoled, Abhay is then called for a late-night meeting by Bhadra again. When he leaves for Lodhi's house first, Surinder tries to attack and rape Lodhi's daughter who is being cared for by Abhay and his wife. At that point, Mala orders Surinder at gunpoint to leave the girl, but Surinder shoots Mala. Sumitra sees all this, and to save her (Lodhi's daughter), seduces Surinder. Once in the bedroom, she pushes Surinder off and kills him with his gun.
Abhay Singh is informed and he returns home, consoles his family, and bids them goodbye. He goes to meet Bhadra, where he attacks the criminal and is overpowered and bound to a chair. With only Shiv in the room, Commander Bhadra asks Abhay about the inside man and suddenly points the pistol at Shiv. Abhay jumps off, attacks Bhadra, breaks free, and stabs him in the neck with the broken wood of the chair. On hearing the commotion, as the entire gang comes from outside to break into the room, Abhay tells Shiv to shoot him, because then it will appear as though Abhay was killed when he attacked Bhadra, and Shiv being highly trusted, would become the new gang leader. A reluctant Shiv does so, just as the gang enters. Shiv declares himself to be the terrorist gang leader, and the others accept his leadership. Abhay Singh then dies.
