School master Dharam Murti witnesses a murder of a man at the hands of Sher Singh Bandookwala. But Sher Singh with his might, terror and money sets free. In revenge he places Dharam Murti in an awkward position with a lady teacher, Menaka. Dharam Murti ashamed of this vacates his village and abandons his wife & children. His wife Savitri helps her son Ravi (Ajay Devgn) become an engineer who then resolves to fight against Bandookwala and get his father's spoilt reputation back. Bandookwala has terrorised all the villagers. His daughter Rekha (Tamanna Bhatia) follows his footsteps and grows into an insensitive woman who tries to harass people. Ravi's sister Padma has to marry munimji's son Shakti as she is pregnant with his child. After marriage, Shakti and Bandookwala together start harassing Padma. Rekha falls in love with Ravi and decides to play same trick against the Bandookwala by pretending to be pregnant with Ravi's child. Ravi finds his father as a worker on a dam construction site. Ravi then presents Bandookwala guilty before the panchayat but is freed by Dharam Murti on condition that he should show affection to the poor and treat them well. Finally Bandookwala becomes a good man and then Ravi marries Rekha.
It is an official remake of the 1983 blockbuster of the same name, directed by K. Raghavendra Rao starring Jeetendra and Sridevi, which itself is a remake of 1981 Telugu movie Ooriki monagadu, directed by K. Raghavendra Rao himself.