- The third film in Ram Gopal Varma's Sarkar trilogy, which chronicles the exploits of a powerful political figure.
- Annu Karkare (Yami Gautam) conspires and attempts to avenge the death of her father, for which she blames "Sarkar" Subhash Nagre (Amitabh Bachchan). Juxtaposed with the situation is Sarkar's own personal battles with his volatile grandson Shivaji Nagre or "Cheeku" (Amit Sadh). Parallely the political and corporate diaspora pose threats to Sarkar's dominance. Assisted by his aide Gokul Satam (Ronit Roy), Sarkar deals with one of his greatest adversaries in the form of Michael Vallya (Jackie Shroff) and the moody and seemingly violent politician Govind Deshpande (Manoj Bajpayee).
A random businessman Gandhi, brings Sarkar a proposal to clear a part of East Dharavi to develop a 20,000 Crore project. He wants Sarakar's support to clear the slums. Sarkar refuses as there is no alternate plan to rehabilitate the displaced residents. The businessman is known to be very well connected politically. His boss is prominent business Michael Mallaya. Michael is hands in glove with corrupt politician Govind, who runs a rabid anti-Sarkar plank. Shivaji is exiled from Sarkar's house by Sarkar's wife, but wants to come back and serve Sarkar. He declares that he agrees with Sarkar's decision to kill his own son and Shivaji's father (Abhishek Bachchan). Sarkar seemingly believes Shivaji and gets him into the business by working with Gokul.
Secretly, Shivaji loves Anu, who hates Sarkar for killing her father. Michael and Deshpande have bought off the union boss Gorakh of the east Dharavi mill. The union boss goes to Sarkar to get his permission to strike as management has laid off 500 workers. Sarkar refuses to give permission (fearing that Gorakh is sold). Gorakh insults Sarkar and Shivaji slaps him off. Gandhi hires mob boss Shetty to help clear the slums and his goons beat up slum residents. Shivaji beats up Shetty. Gokul does not like Shivaji's strategy, but Sarkar backs Shivaji. Gradually Shivaji starts sidelining Gokul in key strategy decisions like buying off Gorakh, which Gokul is against. Gokul tells Sarkar about Shivaji's relationship with Anu.
Sarkar warns Shivaji against harming Deshpande. Gandhi has a secret meeting with Gokul & asks him to help him kill Sarkar. In exchange, Gandhi promises to make Gokul Sarkar, and also help him eliminate Shivaji. The attack on Sarkar fails and Gokul plays an active role in saving Sarkar, along with Shivaji. In a daylight attack, Deshpande is killed, by unknown assailants. Inevitably, the fingers point at Sarkar.
Shivaji tells Sarkar that Gokul is behind Deshpande's murder. He shows the video of Gokul's meeting with Gandhi as proof. When Sarkar confronts Gokul, he blames Shivaji of orchestrating the whole charade against Sarkar. Gokul also tells Sarkar that Shivaji as come to Sarkar to avenge his father's death and to break Sarkar's dominion. Sarkar decides to eliminate Shivaji and discusses the matter with his invalid wife Rukku Bai (Rohini Hattangadi). Rukku begs for Shivaji's life as she has already lost her 2 sons. Sarkar listens and decides to kick Shivaji out of the house. Shivaji aligns himself with gangster Bhosle, who was the real force behind killing Deshpande. He then aligns with Gandhi and Gorakh to create a coalition against Sarkar. Gandhi meets Anu in private and says that she should use her control over Shivaji to stake her claim to become the next Sarkar
Meanwhile Michael Mallaya is still in the loop via Gandhi and is orchestrating all the events in India. Gandhi provokes Shivaji to execute a terrorist strike on Mumbai to weaken Sarkar's position among the masses. Gokul convinces Sarkar to order the elimination of Shivaji. But the attack fails and Shivaji & Anu escape. Michael takes advantage of the situation and orders the elimination of Gokul, while making sure that the blame falls on Shivaji. Sarkar vows to kill Shivaji.
Michael now decides to eliminate Shivaji as he feels that Sarkar is truly irreplaceable. Michael convinces Shivaji to meet Sarkar and convince him that he did not eliminate Gokul. Now Michael decides to meet Sarkar and offers his help to kill Shivaji. Now Sarkar reveals that Shivaji did not kill Gokul. It was Sarkar who ordered Gokul's death. Shivaji and Sarkar were always working together. They wanted to expose Michael as the real puppeteer and hence the elaborate charade. Gokul was threatened by Shivaji's rise and hence was tempted to shake hands with Gandhi. Sarkar knew this very well. Shivaji arrives and kills Michael. Anu eliminates Gandhi by revealing that Gandhi was the real person behind her father's murder.
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