Dhingra (Amitabh Bachchan), who interviews the three leading members of the Bombay Encounter Squad: Additional Commissioner of Police Shamsher S. Khan (referring to A. A. Khan, played by Sanjay Dutt), Inspector Kaviraj Patil (Sunil Shetty) and Constable Javed Sheikh (Arbaaz Khan). The main film timeline is the extended interview of the three officers by Dhingra; as the officers answer Dhingra’s questions, the film flashes back to show the incidents.
Dhingra asks about the Encounter Squad. Khan explains that he hand-picked 27 of Bombay police’s best-enlisted men and officers. He borrowed the concept from the LAPD SWAT team to help combat crime. The film flashes back to show Khan selecting his men and putting them through intensive physical and mental training to be “fast, efficient and deadly.” Dhingra is hardly impressed: he points out that if Khan “shoots to kill,” he is no different from the gangsters he seeks to destroy.
Dhingra asks why Khan felt he had to do this. Khan explains that following Operation Blue Star in 1984, several Sikh terrorists fled to Bombay and began establishing a base in the city. They engaged in violence, extortion, and other subversive tactics to grow their operations. The film flashes back to show Sub-Inspector Mhatre (Abhishek Bachchan), a very brave officer and disciple of Khan, pursuing and subsequently getting shot down by a group of Sikh terrorists. Khan is deeply frustrated when the Bombay police, mired in internal bureaucracy and corruption, fail to act. He obtains clearance from police commissioner Krishnamurthy (played by the real A. A. Khan) and sets out after the militants. Khan asks Meeta (Diya Mirza) to cover the incident so as to deter future terrorists. True to Khan’s words, he successfully “encounters” (it indicates summarily gunning down criminals; extrajudicial killings is the term accepted internationally) the terrorists who shot PSI Mhatre. (As per A. A. Khan, the encounter with Khalistani extremists was more dangerous and tough than the Lokhandwala Complex shootout.)
The film segues into the life of Maya (referring to Bombay gangster Mahindra Dolas though the film never mentions Dolas specifically; played by Vivek Oberoi). Maya is the second-in-command of the “big boss” in Dubai (a clear reference to Dawood Ibrahim though the film does not mention his name) and runs his criminal activities in Bombay. Maya recruits Bhua (referring to Dilip Buwa, played by Tusshar Kapoor) after successfully hatching a plot to eliminate Bhua’s old gang led by Ashok Joshi. At this point, Maya and Bhua are at the top of Bombay’s underworld, reporting directly to the big boss in Dubai.
Things heat up when Khan recognizes, through his network of spies and informers, that Maya is responsible for several criminal and possibly terrorist activities. Around this time, Maya’s ambitions, fuelled by his mother’s (Amrita Singh) insistence, grow to the point where he wishes to assert his independence from Dubai and take over Bombay himself.
Khan’s ATS now focuses on eliminating Maya and Bhua, and begins a dangerous cat-and-mouse game where neither side shows any overt aggression but tries to disable the adversary by tactical maneuver. Khan launches “visits” to the criminals’ families to try to “persuade” them to counsel the criminals to surrender. In turn, Maya and his men return the “visit” by approaching the cops in social situations. Maya visits Khan at a restaurant where Khan is having dinner with his family. Maya quietly tells Khan: “This is between your men and mine. Leave the families out of it.” Khan retorts: “I did this to give you an opportunity to come clean. But now it appears that any resolution hangs off the barrel of a gun.”
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