Khakee is the story of Anant Srivastava (Amitabh Bachchan), a man who has accomplished precious little in his career as an officer, regardless of various promotions. He, and his chosen team are to go to Chandangarh and bring terrorist Dr. Iqbal Ansari (Atul Kulkarni) to a Mumbai court. Amongst his squad are Sr. Inspector Shekhar (Akshay Kumar), who is the police force's bad boy, and Sub-Inspector Ashwin Gupte (Tusshar Kapoor) a rookie fresh out of training on his first mission.
With two constables, the squad goes to Chandangarh, where they meet Mahalaxmi (Aishwarya Rai) who is the only one who recognizes the face of the terrorist ring's leader, Angre (Ajay Devgan), who is doing all in his power to prevent Ansari's appearance in court. Does the squad succeed in taking Ansari to court? Is Angre defeated? The rest is a roller coaster ride of twists and turns that answers these questions and always manages to catch the viewer unaware.