Jhimli meets Raghu and tells him that he has a second chance thanks to Liak, that very few get such chances Liak never did and that he should not waste it. Raghu finally did away with the Liak's share dumping it in a drum and sending it away. After seven months, Liak succumbs to cancer in jail. Liak takes Raghu's blame, giving Raghu a second chance to live his life, and also doing one good thing in his own life before dying. Liak walks into the police station and confesses to killing Harman and his wife and also reveals where to find the dead bodies. Raghu refuses the policeman and prepares for a final showdown. He finds that his mother does not have a single good word to tell about his father and realizes that soon he will also be spoken of in the same manner people a complete no-gooder without a single good deed to speak of. Liak returns home in a distraught state knowing he has caused misery and possibly his friend's death too. He meets Raghu and offers a deal, the money which Raghu got from Harman for removing the evidence. The police inspector investigating the case now has circumstantial evidence that Raghu murdered Harman and his wife. Jhimli, who is now a keep of a local businessman, breaks down knowing that Liak is now near death. Liak meets his former girlfriend Jhimli for one last time. Liak tells Raghu that there is no difference between them, and that Raghu has become mad and should go for treatment. Liak tells Raghu that it was him, and not Harman, who killed Raghu's wife and child, but he did it in a moment of panic, unlike Raghu who, Liak points out, planned his murders with a cool mind and without any certain knowledge of guilt. When Liak regains consciousness, Raghu tells him in detail how he killed Harman and his wife and disposed of their bodies and also tell him that Herman's wife was also ready to sleep with him. But Raghu soon overpowers Liak and beats him senseless. Liak breaks into Raghu's house in search of the money and gets into a rough fight with Raghu.
A despondent Liak learns from his mother that Raghu came to know Harman's name from her. Police now turn suspicious and start investigating Harman, who seems to have disappeared with his wife. Later he returns and buries the bodies of Harman and Kanchan on a lonely hilltop. He pretends to be in love with Shobha and dupes her in believing the same. Raghu meets Shobha (Divya Dutta), the NGO worker who was instrumental in arranging Liak's parole, to create an alibi. Raghu takes the money but kills both Harman and his wife brutally, with a hammer. Harman promises to give Raghu Liak's share of the money.
He tells Raghu that while he was involved in the robbery, it was Liak and not him who shot and killed his son and wife. Harman pleads with Raghu not to reveal his name to the cops. However, Raghu has already met and interrogated Harman along with Harman's wife Kanchan (Radhika Apte). Liak nevertheless manages to contact Harman, and arranges to meet him and take his share of the money. After his parole, Liak is kept under watch police as they believe he will lead them to the unknown partner.
Bent on vengeance, Raghu starts for Pune and finds Harman, who now runs a well-established restaurant in Pune and is a respected member of society. Unknown to Liak, Raghu has facilitated the release providing a letter of pardon for Liak to the court, in exchange for being told the elusive partner's name Liak's mother. 15 years later, a cancer-ridden and terminally ill Liak is paroled from prison on compassionate grounds. After Liak's sentence, Raghu exiles himself to a reclusive life at a chance station where he gets down from a train and unsuccessfully attempts to commit suicide Badlapur. He hires a detective and learns about Jhimli (Huma Qureshi), a prostitiute who is Liak's girlfriend, and visits her to inquire about the missing partner. Raghu tries his best to get the name of this partner, who he believes killed his wife and child, but fails. Liak is sentenced to 20 years in prison, but refuses to reveal the identity of his partner in crime. Raghu (Varun Dhawan), shattered from the loss of both his wife and his son, immerses himself in seeking revenge on both culprits. Harman jumps out of the car to protect the money while Liak is arrested. Both mother and son later died from their injuries in the hospital. Robin falls out of the moving vehicle during the struggle, while Misha is shot Liak. Liak (Nawazuddin Siddiqui) and his friend Harman (Vinay Pathak) are on the run after robbing a bank and use Misha's car to flee. Misha (Yami Gautam) and her son Robin become the victims of a bank robbery getaway during a shopping trip.