Danga Fasaad starts in the night on the streets of Bombay where a couple and their 6 year old child is in search of food, Instead of getting food they met a local goonda Khairnar whose intentions were bad, instead of giving helping hand to them he tries to rape the mother of the child. In the scuffle both the parents are killed by Khairnar and he escapes.
Years pass by. The same child Jai is 21 and has been brought up in a small Basti called Dongar Basti. Jai has a friend Raja. Jai & Raja live on the donations they usually take from the basti people on any happy occasions such as pooja's birthday's etc. On the other hand Khairnar who now is a powerful man wants to put up Country Liquor Bar in the Dongar Basti. The two boys Jai and Raja object to it and tension starts between Khairnar and the boys. Meanwhile a girl Tina comes in the life of Jai. Tina belongs to a very rich family. Raja objects Jai to get involved with Tina as he has a past experience with a rich girl. Jai feels Raja is jealous with the affair and both friends apart. Raja joins Khairnar.
Khairnar uses Raja to acquire the Dongar Bast land. Tension starts between Raja and Jai. Jai towards the climax comes to know that Khairnar is the same person who had killed his parents and the climax starts where Khairnar is killed by................
(From the official press booklets)