Laal Batti examines the unseen facets of the day-to-day lives of policemen. Oftentimes, the public regards the men in khakee as irredeemable and corrupt, choosing to maintain a safe distance from them. The film aims to correct this warped perception by presenting a humane portrait of Maharashtra's law-enforcement officers. Inspector Pawar becomes suspicious of commando Ganesh Dhangde because of his odd behaviour and decides to investigate the truth about his real identity.
