Meera and Arjun are professionals living in Gurgaon. On their way to a luxurious desert holiday they stop on a Highway dhaba for dinner, where they witness a young girl being picked up by a bunch of hoodlums. Arjun chooses to step in, unmindful of the danger ahead.
Four friends Kalim (Angad Bedi), Gautam (Neil Bhoopalam), Maya (Kangana Ranaut) and Abhay (Randeep Hooda) form a gang called the “Ungli” gang which fights against corruption prevailing in society. Their job is to target corrupt people and punish them in a unique manner. Due to increased popularity and their high profile targets, they are sought by Mumbai police department as “wanted”. Their case is the responsibility of ACP Ashok Kale (Sanjay Dutt) and inspector Nikhil Abhyankar (Emraan Hashmi). Nikhil disguises himself as a college student and joins the ungli gang with the hidden motive of arresting them. But soon, his heart changes after learning the story of why ungli gang was formed. Meanwhile, Kaale is compelled to seek help from the gang when Nikhil helps him expose the gang’s greatest target, B.R. Dayal (Mahesh Manjrekar) and his son Anshuman.
Unfolding through a course of a night in Mumbai, Kaalakaandi showcases three parallel tracks — a man who discovers he has terminal illness decides to let go of his principles and live a little; a woman involved in a hit-and-run seeks redemption and two goons must decide if they can trust each other.