Akshay Kumar is honest cop Hari Om Patnaik, who gets transferred to Mumbai's crime branch as DCP. He meets encounter specialist inspector APPA Kadam Naik (Shetty), sub-inspector Vikram Singh (Sinha), and constable Khaled Ansari (Rawal). This motley crew likes to take the law into its own hands: eye for an eye, tooth for a tooth. Think trigger-happy, and you will figure out why no one survives a Kadam encounter! Honest intentions take the back seat here as these cops succumb to a system rife with corruption, bribes, and the ubiquitous underworld nexus. Which brings us to industrialist Gautam Walia (Shroff), the crooked home minister Manik Rao (Mohan Agashe), and the man who's 'don' it all, Yusuf Pathan (Irrfan) - all hand-in-glove in search of more power and more money. It is a web of deceit, double-crossing, and debauchery. Though Kadam, Singh and Ansari try to weed out the troublemakers of Pathan's gang using the third degree, it is Patnaik who pushes them into toeing the line. They buy his 'Criminals are humans too' logic and 'It's not about the pay, but the honour', and see themselves transform into the moral police. Make that police with morals. But morality returns to haunt Patnaik when members of his own team fall victim to these troublemakers' bullets. When Walia's rival industrialist Ajit Pradhan (Milind Gunaji) is killed by Pathan's Goon Yeda, and when Pathan's henchmen shoot at Kadam's wife and child, the police force, including the commissioner (Om Puri), bays for blood.
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