- A suspended cop joins hands with inspector Mahadev Bhonsle to free the city from underworld.
- Inspector Mahadev Bhosale (Sanjay Dutt) is tasked by his seniors to form a hit squad called the "Department" to take on the Mumbai underworld. He recruits Shiv Narayan (Rana Daggubati), a police officer, who was suspended for an encounter killing. Shiv killed a member of the underworld gang led by Mohammad Ghouri, in broad daylight. His senior suspends him for not following the due process of the law.
The Ghouri gang is at war with the Sawatya gang in Mumbai. Ghouri and Sawatya used to work together a few years ago, but then had a falling out and are not vying for the control of all illegal businesses in Mumbai. Ghouri is winning the war and the police is being blamed for doing nothing. The Police chief, the politicians and the business community give Mahadev extra-judicial powers to clean up the city of the underworld menace.
Mahadev is married to Satya (Lakshmi Manchu) and Shiv is dating Bharati (Anjana Sukhani). Mahadev had met Shiv for the first time during the Yerwada incident. Back then, a terrorist named Khurshid, along with 9 associates, had taken 30-40 blind kids' hostage inside a local school. Khurshid had already thrown a kid from the balcony, who died. Instead of negotiating, Mahadev attacks and along with Shiv, kills all the terrorists. Khurshid is the only one left and wants to surrender, but Mahadev shoots him dead since Khurshid was responsible for the death of constables as well.
Mahadev and Shiv, along with others in the "Department" (Like Danaji (Deepak Tijori), Pradhan, Sheikh and Vernekar), target the underworld don Sawatya (Vijay Raaz) and his gang in their first few encounters. Sawatya, in spite of many exhortations by his number two, D.K. (Abhimanyu Singh), and D.K.'s girlfriend, Naseer (Madhu Shalini), does not hit back at the police. Sawatya explains that the whole underworld works on the basis of an uneasy truce with the police. If a single policeman is harmed, the entire truce will be disturbed and will lead to a bloodbath. Naseer wants DK to remove Sawatya and take over the gang. Soon, Sawatya loses 15 of his best men to the Department. Sawatya blames DK for the loses and says that he is under undue influence from Naseer. This pulls DK even further apart from Sawatya.
Shiv also wonders that all the criminals being gunned down belong to Sawatya's gang and nobody from the Ghouri gang is being even found or coming on the police radar. A gangster-turned-minister, Sarjerao Gaikwad (Amitabh Bachchan) and Shiv form bonds, when the former saves the latter's life at a public rally. Shiv was assigned to protect Sarjerao after the department received a threat to his life. Shiv suspects that it is the Ghouri gang that wants to kill Sarjerao.
Mahadev warns Shiv that Sarjerao is just using him. Sarjerao gets Shiv approved for a Government servant quota flat, which enables Shiv to propose to Bharti. Bhari thanks Sarjerao and invites him to their wedding.
Sarjerao calls Shiv for a meeting and asks him to bring Mahadev. Sarjerao tells Mahadev to hold back Ghouri from Sarjerao's business interests and strongly indicates that Mahadev is in cahoots with Ghouri. Mahadev admits to Shiv that he is working for Mohammad Ghouri, an underworld don, and is finishing off Sawatya's gang at the gang-lord's behest. Shiv declines to be a part of Mahadev's world, and Mahadev agrees to let him be.
Naseer convinces DK to go after Ghouri without taking permission from Sawatya. DK goes to Sawatya to split the gang to ask for his share. Sawatya sends Mahadev to kill DK. Mahadev reaches DK and Naseer and instead forms an alliance with them. He asks DK to start a new gang to undercut Sawatya. As DK and Naseer go after Sawatya, Sarjerao knows that he cannot touch Mahadev without evidence. So, he asks Shiv to target the DK gang and eliminate his members. DK and Naseer barely escape from Shiv and want Mahadev's support to eliminate Shiv. Mahadev says that before killing Shiv, they will need to malign his reputation. All through this, Mahadev pretends to be friends with Shiv and says that they should take advantage of the rivalry between DK and Sawatya. Shiv gets married to Bharti.
Danaji tells Shiv that a builder named Thakur is threatening another honest builder named Michandani, using Sawatya's name. Shiv picks up Thakur, asks him to back off and leaves him in the jungle. After Shiv leaves, DK and Naseer arrive and kill Thakur. Mahadev then tells Sarjerao that it was Shiv who took money from Mirchandani to kill Thakur. Danaji gives a statement that it was Shiv who killed Thakur. Mahdev convinces Sarjerao that it is Shiv who is aligned with the Ghouri gang and not him.
Mahadev arrests Shiv on the orders from Sarjerao. But Shiv escapes arrest and finds Danaji. Danaji says that he was forced to lie as his son was kidnapped. Danaji says that it is Sawatya who wants to frame Shiv. Sarjerao wants Shiv to surrender, but he refuses. Sawatya invites Shiv for a meeting, after calling him and telling him that he has never hurt a policeman in his life. At the meeting, Shiv launches an all-out attack on Sawatya and kills all his men. Sawatya is cornered and tells Shiv that he works for Sarjerao. Sawatya makes Shiv talk to Sarejrao who confirms this.
DK wants to eliminate Shiv by luring him out of hiding. He asks Mahadev to abduct Bharti, but Mahadev warns DK not to involve family in a professional dispute. DK and Naseer decide to abduct Bharti without telling Mahadev.
Meanwhile Sarjerao tells Shiv that the Government is behind Sawatya. Ghouri is a terrorist, and the Government made a deal with Sawatya so that the control of Mumbai doesn't fall into Ghouri's hands. Sarjerao also reveals that Mahadev is the real boss behind the DK gang and has just abducted Bharti. Shiv calls Mahadev and says that he has Sawatya and offers to hand him over if DK would hand over Bharti to him. Mahadev is shocked that DK abducted Bharti despite his explicit instructions.
Shiv then attacks DK's hideout and kills everyone, including DK and Naseer to rescue Bharti. Then Shiv goes to meet Mahadev and attacks him. In the ensuing battle, Shiv shoots Mahadev and he dies. Later, while Shiv is with Sarjerao, Ghouri calls Shiv and the cycle goes on.
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