Ajay Sharma (Shahrukh Khan), is a man who seeks revenge. His father, Vishwanath Sharma (Anant Mahadevan), once owner of a great business empire, was defrauded by Madan Chopra (Dalip Tahil), a trusted employee in Vishwanath's company. The Sharma family is ousted from their own company and loses everything they owned. Soon afterwards, Ajay's father and his young baby sister die due to illness, unable to buy medicine because of their destitute state. His mother (Rakhee) is now suffering from mental illness and memory loss. Driven over the edge, Ajay becomes obsessed with killing Chopra and destroying his family.
Ajay begins dating Seema Chopra (Shilpa Shetty), the daughter of the owner of Chopra business empire. They meet secretly as her father would not approve of a poor son-in-law. Meanwhile, the younger daughter Priya Chopra (Kajol) travels with her father Madan Chopra to Madras (now Chennai), for Madan's final kart race before he retires permanently. Madan has never lost before, but comes across Vicky Malhotra (Ajay Sharma in a disguise of brown contact lenses). Vicky allows Madan to win by slowing at the last corner and tells him that he couldn't beat his "guru". Vicky then charms Priya by saying that he lost the race as he couldn't break the heart of a beautiful girl. Thus his ploy of winning in spite of losing (meaning Baazigar) succeeds as he wins Priya's heart. This way, he manages to date both Seema and Priya simultaneously using different identities.
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