Madanlal is a business magnet and is supposed to be in the elite of the city. Honesty and large-heartedness are the qualities attributed to him. The truth was to the contrary. He was a gangster. Vijay, his younger brother, hardly knew of his elder brother's clandestine activities. Madanlal's troubleshooter was Shankar who was also a gangster but a small fry as compared to his boss.
A poor runaway girl Rekha, came into the life Shanker and she called him a brother. She completely changed the course of his life. Evil turned into good. She fell in love with Vijay, Madanlal's younger brother. Shankar approved of their love on condition that Vijay and Rekha would be married. Vijay knew the difficulties of this union. Madanlal would never allow him to marry a poor runaway girl. Shankar's friend Madho invented a scheme and he declared that Rekha was a princess. Madanlal, taking her to be real princess allowed his brother's marriage with her.
Shankar's uncle accidentally came to participate in the wedding and the truth downs on Shankar that Rekha, whom he treated as his sister, was in fact his real sister.
Shankar told the true story to Madanlal but he turned a deaf ear to all his loyalty and refused to let this marriage take place. Shankar now realised the difference between a big and small gangster. Madanlal never rated himself to be a gangster but respectable citizen.
What this incident did to Shankar's Loyalty? Did he revolt? Could Shankar succeed in getting Rekha married to Vijay? And ultimately what happened to these two gangster? These and many more questions will only be answered when you see "GUNDA".
(From the official press booklet)