Following a tip from a small time lodge owner (Sadique), the ATS conducts a search at the rooms where a group of suspicious youths stayed. Baba Kalyani IPS (Mohanlal), the head of ATS M3 division finds certain vital clues, which he wants to investigate further.
With permission from Bose Ninan (Venu Nagavally), the IG of police, Baba Kalyani arrives in Kochi. He is posted in the Law and Order department as undercover with Godwin Joseph (Biju Menon) and a couple of ATS officers assisting him. All his men were newly inducted IPS officers. At Kochi, Kalyani clashes with advocate Ashokan (Murali) and Advocate Madhumitha (Mamta Mohandas), his daughter, who was his ex-girlfriend.
A bundle of counterfeit currency is found at a local bank, which was transferred from the account of a charity organization run by Sait Isra Mohammed Haji (Saikumar), a respected businessman. Baba Kalyani reaches the residence of Isra Mohammed in order to interrogate him, but Isra denies any knowledge about any hawala dealings in the state. The cash was transferred from the account by Babur (Indrajith Sukumaran), Isra Mohammed's son-in-law, who is also a college lecturer. Babu is king-pin of a terror organization in the state.
He along with a bunch of young men had secretly undergone Jihadi training in Pakistan and is planning a massive explosion. But unaware of this, Isra supports him thinking Babu is a normal college lecturer busy with his own life. One morning Isra arrives at Baba Kalyani's residence informing about a group of suspicious young men recently seen at the nearby mosque. He also adds that the Muslyar of the mosque has some doubts regarding their activities.
Baba Kalyani, along with Godwin and their group conducts a raid at the house and gathers vital information. The house explodes, indicating that it was where the explosives had been stored. Baba Kalyani, from the prints, maps and photographs concludes that their next target is Palani, a divine pilgrimage center in South India. He arrives at Palani along with his team, where meets up Raghupathi (Siddique), the IG of Tamil Nadu police.
With the support of local police, Baba seize the trucks in which the explosives were stored. Baba sends Isra Mohammed as a negotiator to Babu who was hiding along with a group of Jihadis. But unwilling to give up the plan,Babu decides to shoot down Isra. The ATS team conducts a commando operation and shoots down the jihadis aborting their plan.