Kagaar movie is based on Mumbai encounter specialist Daya Naik is more colored in realism and any instant of a romance in it has been kept due to masses in mind.
Naive, simple-minded, and illiterate Bhaskar Sarnaik (Amitabh Dayal) comes to Bombay from his far-off village, to look for his missing brother, Raghuvir. He comes in contact with Sub-Inspector Gokhale (Om Puri), who feels sorry for him, and not only offers to find his brother, but also employment at an Irani Restaurant.
Bhaskar does find his brother - in the morgue - but decides not to tell his mother as this may break her heart. He decides to stay on in Bombay and undergoes training to become a police officer. A short time later he is also a Sub-Inspector working closely with Gokhale. He is wounded in an encounter, and his mother comes to look after, and gets him to marry Aditi (Nandita Das) from the same village, which Bhaskar does so. Then the police must hunt for Adi, a notorious hit-man.
When Bhaskar comes face to face with Adi, he does not shoot him, and as a result Adi escapes. Adi then gives an interview on television that he is the child-hood friend of Bhaskar, and that he would never be shot at by Bhaskar. As a result, Bhaskar gets suspended from service, and becomes the subject of an intensive investigation by the Crime Branch, who are now convinced that Bhaskar is on the pay-roll of Adi and other underworld elements.