Gunda Gardi is the story of a white-collar criminal Kalicharan (Raj Babbar) who has terrorised the whole city and is referred to as Mafia Don. He has two lieutenants in his nefarious activities, one Narsinha, his younger brother and the other Jiva (Sanjeeva). Every day there is some victim, no matter he is a leader or a commoner.
To put an end to his reign to terror, Police Commissioner Karan Singh (Dharmendra) is given charge of the operation. Kalicharan ransacked and kills the minister for his (minister's) inability to transfer Karan Singh.
Vijay (Ayub Khan) (brother-in-law of Karan Singh), a Journalist is brutally murdered in broad daylight for exposing the activities of Kalicharan in papers.
Out of shock Vijay's wife, Guddy (Simran) commits suicide, Deepa (Vijaya Shanti) is an eye witness to the murder of Vijay. To protect from any harm Deepa is sent behind bars in a made up case, planning to kill Home Minister.
Raja (Aditya Pancholi) is Deepa's lover and is an army man. He can't believe this news, for he knows Deepa is innocent, commissioner also believes her innocence. He plans to embolden her to face the criminals and gets her released.
Karan Singh, Deepa, Raja, join hands to put an end to the activities of Kalicharan.
(From the official press booklet)