On a calm summer day in 1991, in the bustling Lokhandwala Complex, five criminals including Maya and Dilip were counting 70 lakhs in flat no. 32 B, when 286 policemen, headed by ACP Khan, took strategic positions around their building. A gunfire ensued and the entire nation witnessed the most talked about daylight encounter lasting 6 hours that transformed suburban Mumbai into a virtual war zone. Shootout At Lokhandwala is the story of a seasoned cop, Khan, who chased Khalistani extremists, handpicked cops like Inspector Kaviraj Patil and Constable Javed Shaikh, and dared to engage trigger-happy gangsters in a residential locality of Mumbai. Khan's fight went beyond the encounter as he faced inquisition from his own department and legal charges of human rights violations. Shootout At Lokhandwala is the story of an upcoming underworld gangster, Maya, and his highly skilled partner, Dilip. The two made extortion the buzzword in the early 90s and dared to disobey the big bhai of the underworld, drawing the attention of Khan and his newly formed ATS squad. Both Khan and Maya were men obsessed, so devoted to their professions that their personal lives were a disaster.
Shamsher S. Khan lives a wealthy lifestyle in Bombay along with his wife, Rohini, and school-going daughter, Heena, and is employed as the A.C.P. with Bombay Police. Encouraged by the Police Commissioner he forms the ATS (Anti-Terrorist Squad) during 1990, which is based on U.S.A.'s SWAT team, recruits Inspectors Kaviraj Patil and Javed Khan, as well as 27 other fit members from different Police Stations. After Operation Blue Star many Sikh terrorists fled to different parts of Bombay, including Antop Hill, Charkop, and Bhandup, and then began a reign of terror by abducting children from wealthy Sikh families, demanding high ransoms, and instilling fear amongst witnesses who never dared to report them to the Police. Then one day S.I. Abhishek Mhatre witnesses them carrying automatic weapons, challenges them, and is killed. Shamsher asks Mita Mattu, a TVN Reporter, to take live shots of himself and his team as they hunt down and kill Baldev Singh and his gang at Antop Hill. This media coverage makes him a hero overnight, and instills considerable fear in the underworld. But Shamsher and his team have a much bigger challenge ahead when two gangsters, Maya Dolas and Dilip Buva, owing allegiance to their Dubai-based boss, unite to extort money from wealthy businessmen, including Sidhwani and Wadhwani. Shamsher's efforts to force the duo to come into the open by pressurizing their respective families prove deadly as the duo end up threatening him, his family, as well as Javed's and Kaviraj himself. Shamsher is unable to apprehend the duo as they keep on changing their hideouts, but gets his break when he finds out that the duo, along with their associates, are holed up in Flat No.302, at the A Wing of Swati Building in Lokhwandwala Complex, in Andheri West off of Char Bungla. Hoping to trap and kill them, Shamsher enlists approximately 400 armed police officers - little knowing that his efforts to kill them will be hampered as the gangsters have a hostage, are armed with automatic weapons, including a rocket launcher, and that JCP Tripathi, will soon be reaching the site to instruct Shamsher to withdraw the entire operation, amidst allegations that Shamsher himself may have connections with Maya's Dubai-based boss.
Based on the shootout in Lokhhandwala 1992, when commissioner of police, Aftaab Ahmed Khan, shot Dawood Ibrahim's aides including Maya Dolas and Dilip Bua. This caused massive controversy after it was rumored that Dawood asked for the shootings to take revenge on his aides who has fallen out with him.