Shastri Suri (Shreeram Lagoo) comes from a middle-class yet honest background. He has raised his son, police inspector Siddhant Suri (Govinda) and daughter Bindiya and second son Nandu (Rajoo Shrestha) in a similar way. But Nandu has fallen into bad company. He is in debt and unable to repay his debt. Therefore, he decides to rob and does so at the house belonging to Pooja (Karisma Kapoor). When Pooja confronts him, he attacks her and as a result Pooja loses her sight. A blind Pooja subsequently weds Siddhant, not knowing that her assailant is her brother-in-law. Shastriji's employee Kanhaiyalal (Kader Khan) is greedy and ambitious. When Shastriji stands for election, he is opposed strongly by corrupt and avarious Adarsh Vardhan (Shakti Kapoor). By hook and crook, Adarsh wins the election and decides to humiliate the Suri family. He asks that his bodyguard be none other Siddhant Suri. Siddhant must now choose between staying with the police force and serving his corrupt master.

Siddhant chooses to serve, but only so that he can find out more about the corrupt minister and his dealings and to reveal the same to the public. Siddhant finally discloses the same to the public gathered in a rally and the minister is forced to flee the scene. Pooja's eyes are operated upon and her vision is restored. She identifies Nandu and Siddhant takes revenge on his brother.

Govinda narrowly escaped death on 5 January 1994 while traveling to a studio for the shooting of Khuddar. The actor's car collided with another car, resulting in him sustaining injuries to his head. Though bleeding profusely, Govinda did not cancel the shooting. After visiting a doctor, he shot for the film till midnight.^[3]