Plot

Two small-town musicians kidnap a young woman in order to make a quick buck, but earn the wrath of a powerful politician in the bargain.

Based in the dusty plains of North India, Guddu Rangeela is a story about two cousins trying to make ends meet in the crime infested surroundings. Orchestra singers by day and informants by night, acquiring measly pay offs from the information provided to local gangsters about the richest families in town, has fetched them an easy and safe way to subsist without getting their hands dirty in the bargain. Although cousins by blood, both are very much unlike each other. The love hate rapport of the two comes to be seen through the many dangerously funny circumstances that they are met with and their impromptu methods of saving their skin each time. Having suffered a tragic past at the hands of the gang lord turned politician Billo; the antagonist of the tale; both are discreetly entangled in a 10 year old legal battle against him through Gupta, an honest advocate fighting on their behalf. While the unorthodox and impulsive Guddu aspires to grow out of their hand to mouth way of life by executing the loot themselves, the comparatively self-righteous and mature Rangeela despises the idea of getting onto the dark side of the city's law. Like money, women too are Guddu's poison, who is time and again seen flirting and effortlessly pulling off one night stands. Rangeela on the contrary hasn't moved on from the tragedy that consumed his only love Babli years back. Rangeela's prime motto has always been to overthrow his nemesis Billo, thus undoing the injustice and cruelty that transpired years back. Lucky enough, one such opportunity comes knocking, which he immediately snags and in the process finds himself confronting the vicious and tyrannical Billo. What follows is a chaotic tale of redemption and payback. An ambition, a plan, a kidnapping and a to and fro tale of victory and defeat leading up to a dramatic climax.—Anonymous

Rangeela (Arshad Warsi) and Guddu (Amit Sadh) are from North India they both are cousins. They play orchestra at private functions and do petty thefts to make money on the side. But they want to make more money and don't care how. So, they use their music orchestra to recce family houses for potential wealth & then sell that info to gangsters, who later rob those houses.

The information provided to local gangsters about the richest families in town, has fetched them an easy and safe way to subsist without getting their hands dirty in the bargain. But apparently, they have sold the same info to many gangs and now all are against them. Guddu and Rangeela barely manage to escape by turning the guns against the gangsters. Guddu wants Rangeela to get into the gangster business themselves, so that they can earn more money.

While the unorthodox and impulsive Guddu aspires to grow out of their hand to mouth way of life by executing the loot themselves, the comparatively self-righteous and mature Rangeela despises the idea of getting onto the dark side of the city's law. Like money, women too are Guddu's poison, who is time and again seen flirting and effortlessly pulling off one-night stands. Rangeela on the contrary hasn't moved on from the tragedy that consumed his only love Babli (Shriswara) years back. Rangeela is adamant that he does not a life of crime. Rangeela dares Guddu to shoot a gun at a random person, making him realize that he is not a gangster.

Billu Pahalwan (Ronit Roy) is a local politician and extremely influential in his community, and against inter caste marriages. Billu believes that death is the only punishment for folks indulging in inter-caste marriages. Inspector Ajay Singh (Amit Sial) is the new inspector in town and demands 10 Lakhs from Guddu Rangeela to look the other way from their illegal activities. He says that in 6 months there have been 16 robberies in the locality and in each instance, Guddu Rangeela performed at the house 1-2 days before the robbery. Inspector Gulab Singh (Rajiv Gupta) works for Ajay. Ajay says that he paid Rs 50 Lakh bribe for the posting and mortgaged his wives jewels for the same and has promised her that he would double the money.

Guddu and Rangeela are discreetly entangled in a 10-year-old legal battle against Billu through Gupta (Virendra Saxena), an honest advocate fighting on their behalf. Rangeela gives all his earnings to Gupta, who discourages him from fighting the case. Gupta has protected Rangeela's identity in court by making sure his name is kept away from the case.

Rangeela's prime motto has always been to overthrow his nemesis Billu, thus undoing the injustice and cruelty that transpired years back.

Bangali (Dibyendu Bhattacharya) is an informant & comes to Guddu Rangeela, with a job to transfer a girl from Chandigarh to Delhi for 10 Lakhs. Bangali knows that Guddu and Rangeela are being squeezed by Ajay Singh and they need the money desperately. He explains that the girl works in Chandigarh, while her family is from Delhi. The girl is deaf and dumb wants to marry outside her caste & the family is willing to pay 10 Lakhs to get her to Delhi, where her wedding has been arranged.

So, they kidnap Baby (Aditi Rao Hydari). They were supposed to get 10 Lakh as kidnapping amount. After kidnapping her they have to face a lot of problem as Bangali instructs them not to come to Delhi & instead take the girl to Shimla to his house managed by caretaker Chunilal (Brijendra Kala). The next day Baby wakes up & Guddu Rangeela realize she is not deaf & mute & is in fact a part of the plan with Bangali. Bangali reveals that Baby wants her family to fork out Rs 10 Crores & each member of the plan will get 2 Crores. Baby is the sister-in-law of Billu Pahalwaan.

Meanwhile, Gupta loses the case against Billu in sessions court. Rangeela informs Gupta that he will not appeal the decision in High court and will work to settle the case out of court.

Rangeela finally reveals that he had married a girl named Babli from a different caste & when he reached home, his bride was shot dead, and father burnt alive by Billu & his strongmen. This was despite the fact that the High Court of Chandigarh had assigned police protection to Rangeela and Babli. Rangeela makes the ransom call to Billu. Guddu tries to hit on Baby. Baby reveals that Billu had married her sister 3 years back but used to beat her for dowry and used to bring girls into the house for sex. He killed Baby's sister & married the daughter of a builder within a few months. So, Baby installed a camera in his bedroom & filmed his extra marital affairs for revenge.

Billu figures that Bangali is somehow involved & tortures him. Bangali reveals that this is Baby's plan. Baby then calls Billu & threatens to reveal the tapes if he kills Bangali & even forces him to release Bangali. Baby then falls in love with Guddu. Rangeela calls Billu & invites him to their wedding & says that dowry is 10 Crores. Billu finally realizes that Rangeela is the same guy whom bride and father he shot all those years ago. He reveals to Rangeela that his bride is actually alive & is his captive.

Billu forces Guddu & Rangeela to come to an abandoned quarry with a plan to kill them all. But at the moment when Billu is about to shoot, Bangali & his associates attack & allow Guddu, Rangeela & his wife to escape. The matter comes to a hand-to-hand combat between Rangeela and Billu, where Rangeela beats him. Billu later gets up & tries to shoot Rangeela but is shot dead by Rangeela's wife (as revenge for her being shot all those years ago).