‘Zila Ghaziabad’ is based on the war between two rival groups, Satbir Singh and Fauji. Thakur Pritam Singh, a corrupt police officer, is transferred to the city to handle the situation. The movie is based on the true story of the gang war that lasted between two groups in the 80s and 90s in Ghaziabad, India. In the village of Ghaziabad, jagmal Singh Choudhary (Paresh Rawal) is a corrupt chairman, and has connections with the gangster Fauji (Arshad Warsi), who is willing to do anything to make a quick buck. When jagmal refuses to pay up to 2 million for Fauji's sister’s wedding, Fauji breaks their ties and leaves him. At the same time, Brahampal befriends a polite teacher named Satbir (Vivek Oberoi) who also happens to be in a relationship with jagmal's daughter Sanika (Charmy Kaur).

Thinking that jagmal has replaced him with Satbir, Fauji becomes furious and joins forces with Rashid (Ravi Kishan), a politician and Brahampal's enemy. Rashid deliberately turns Fauji against Satbir, making him think that he wants him dead. When Fauji tries to attack Satbir, an elderly village spokesman is shot, leading Satbir to fight back against him. But before Satbir is able to do anything about it, Satbir's older brother Karamvir (Chandrachur Singh) is kidnapped, and soon killed by Fauji. Seeking revenge, Satbir turns to the crime world to finish off his brother's murderer. With riots taking place all over, the police department shifts a crazy, tough, feared and solid officer, Thakur Pritam Singh (Sanjay Dutt) to enter the city bring a stop to this gang-war. However, Pritam Singh ends up making it all worse.

Meanwhile, a tape is discovered which not only reveals that Rashid and Faqeera have secretly made a deal with Pritam Singh to murder Fauji, thereby betraying him, but also shows Faqeera confessing to having ordered the attack on Fauji's house at the start of the movie which is what triggered the whole gang-war in the first place. Furious at this betrayal, Fauji kills Faqeera and then heads out to kill Rashid. Pritam Singh also joins in, apparently fulfilling his promise to kill Fauji for Rashid but ends up killing Rashid instead. This results in an action-packed finale that sees Satbir killing Fauji and being arrested by Pritam Singh. His fate then is left unknown.