This is the story about the resilience shown by the Indians when they were under the British Rule. They are already taxed to the bone by the British and their cronies, but when Jack Russell announces that he will double the Lagaan (tax) from all villagers, they decide to oppose it. Leading the villagers is a handsome young man named Bhuvan, who challenges them to a game of cricket, a game that is to be played by veteran British cricket players, versus villagers, including Bhuvan himself, who have never played this game before, and do not even know a bat from a piece of wood. As the challenge is accepted, the interest grows and attracts Indians from all over the region, as well as the British from all over the country - as everyone gathers to see the 'fair play' that the British will display against their counter-parts, who are aided by none other than the sister, Elizabeth, of Captain Rusell.

After being asked to leave by his Palanpur-based landlady Mrs. Rai, Civil Engineering student, Rahul Saxena, finds a room with Rajeshwari Saxena, who treats him like a family member. He is subsequently introduced to her sister, Nisha, both are attracted to each other, and plans are made to get them married. Rahul will soon find out that he will soon not only be asked to leave, but also instructed to assist in the marriage of Nisha with Yuvraaj Saxena.

Four slackers and con-men namely: Boman Contractor, who lives a wealthy lifestyle with his eccentric dad, Nari, who loves his antique car more than his son, and asks his son to leave when he damages the car; hot-headed Aditya and dim-witted Manav, orphaned brothers; and Deshbandhu Roy, a trickster who wears a magnetized belt; share a room with a lenient landlady, who eventually gives up on them and kicks them out. After a number of con tricks, the group are arrested by the Police, but released in the countryside. At this point they witness a car plummet down a cliff, with it's sole occupant, Bose, an underworld don, who, before dying, tells them that he has hidden 10 Crore Rupees in cash in the St. Sebastian's Garden, Goa, and if they find it, it is their's to keep. The group race toward Goa in Contractor's stolen car, little knowing that their plans will soon be foiled...