A policeman is killed in a brawl - one of his boys is adopted by another policeman, the other whisked away and brought up by bandits. Years later, the boys meet-again on opposite sides of the law.

Tejaa, a young man, sets out to kill the three gangsters who murdered his family years ago. After he kills two, the third member realises who he is and tries to stop him from fulfilling his quest.

After being critically wounded and losing his left arm, Captain Jaswant Kumar is discharged from the Indian army and goes to live with Journalist A.V. Razdan in Shanti Nagar, Bombay. Ironically, Shanti Nagar is far from peaceful as it is ruled by extortionists like Peter Gonsalves and Jaichand Khurana who work for underworld don, Taneja. Jaswant and a local taxi-driver, Raju Varma, decide to put up a fight and attempt to drive the goons away - with considerable success much to the chagrin of Taneja, who hires a killer named Raaka to do away with them. Instead they end up befriending Raaka and join forces against Taneja himself. But Jaswant and Raju will soon find out that Raaka never befriends anyone and always disposes off his enemies when they end up getting arrested for smuggling and are sentenced to two years in prison - leaving Taneja and his men to carry on with their nefarious activities.

Ilaaka - has a small little world of its own. A world of dreams and desires love and longings, hatred and hardships. This is Raja who stands at the cross roads of truth and traditions.. In this small world we have Suraj and Neha, the two crusaders against the might of evil. And we have the evil incarnated too! Nagar as vicious as a viper and as blood thirsty as a wolf. Here we have good old Masterji who is ready to sacrifice himself for his tiny world. And we have cunning Swami also, who is ready to destroy everything. Ilaaka has love and laughter, blood and tears. It is as delicate as a petal and as hard as steel. Ilaaka, a painting which has all the seven colours of rainbow.