- On the request of his friend Kabir, SP Adil Sends him to the Naxal group as an informer. When Kabir finds the truth he becomes one of their gang leader.
- The plot is inspired by 1973 Hindi film Namak Haraam directed by Hrishikesh Mukherjee starring Rajesh Khanna and Amitabh Bachchan. Chakravyuh is the story of two best friends: Adil (Arjun Rampal) and Kabir (Abhay Deol). Adil Khan, a highly decorated police officer is posted to Nandighat, after a horrifying massacre of 84 policemen. The 84 men were led by Adil's good colleague KK, who was acting on the information of an insider from Maoist leader Rajan's gang. However, upon attack KK realizes that it is a trap and the Maoists were ready for the police.
Within days, Adil discovers that the Maoists, led by the ruthless and charismatic Rajan (Manoj Bajpai), effectively control the area. They are able to swiftly thwart Adil's most determined efforts. Despite holding a position of enormous power as the SP of Nandighat, Adil has never felt so helpless in his career.
But then, into his life, re-enters Kabir. Rootless, aimless, the quintessential rolling stone. His only anchor in life has always been his friendship with and his loyalty for Adil. The maverick proposes an outrageous plan: He will infiltrate Rajan's group and be Adil's informer, and together they will smash the Maoist organization in Nandighat. In spite of his apprehensions, Adil agrees. Sure enough, Kabir gets in and craftily wins their confidence, as only he can. He secretly begins informing Adil, who starts attacking the Maoists with great success. An enormous cache of arms is raided; two top national leaders and 63 activists are killed at an arms-training camp, and Rajan himself is captured. Within weeks, Adil-Kabir turn the game, pushing the Maoists onto the back foot.
But Kabir also begins discovering a different reality: The abject helplessness of the rural poor, brutally displaced in the name of development, the fruits of which never reach them; their land, their forest, their water snatched by their own government to allow big business to exploit the area and its people further. As the poverty and desperation rise, so does a cry of anger, giving birth to the Naxalite who believes the only way to counter this is with a gun.
Kabir also can't help getting close to the activists. and he begins identifying with them: Rajan; Babu; Venu; and Juhi (Anjali Patil), a dedicated revolutionary with a tender heart, who has seen pain like none other. She begins to fall in love with Kabir. Once the Naxals come under control, the mining conglomerate Mahanta group intensifies its efforts to set up a Rs 15,000 crore steel plant in the region. They need the land & hire private armies to get the villages evacuated. They were not successful earlier because of the Naxals. Adil refuses to cooperate with the Mahanta group, but is sidelined by his own superiors.
In Rajan's absence, the Naxals look for leadership & Kabir is chosen for this honor. Juhi sacrifices herself in a police raid, to save Kabir. She is raped by the police. Kabir organizes a counterattack to rescue her. The next day Kabir meets Adil & pleads with him to stop the Mahanta project & also tells him about the police brutality on Juhi. Adil refuses to cooperate with the Naxal leanings of Kabir. Adil asks Kabir to finish his mission and come back, but Kabir tells Adil that he now completely with the Naxals and their leader.
Kabir organizes an attack on the Mahanta HQ & kidnaps the group head. He then demands Rajan's release in exchange. Adil puts an electronic tracker inside Rajan before exchanging him. To discredit Kabir, Adil publishes a new story that establishes Kabir as Adil's friend. The Naxals react predictably & organize a trial for Kabir. However, Adil & his forces attack using the tracker on Rajan. Kabir figures out that Rajan has a tracker on his body. He extracts the tracker & uses it to lure Adil away from the Naxals. Juhi comes to help & is shot down by Adil. Finally, Adil corners Kabir & shoots him when he reaches for his gun.
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