Ranjit Rai (Sadashiv Amrapurkar) and Harbanslal (Dalip Tahil) are two wealthy business magnates who despise the poor. Thus, they decide their children, Ajay (Ajay Devgan) and Madhu (Juhi Chawla), will marry wealthy spouses. They try to break their children's friendship with Raja (Aamir Khan) and Kajal (Kajol), who are both poor. They fix up Ajay's marriage with Madhu and send Ajay to meet Madhu. As fate would have it, Ajay falls in love with Kajal instead and Raja and Madhu fall in love. This angers the two men, and they try to bribe Raja and Kajal into leaving Madhu and Ajay. When this doesn't work, they try to get Raja and Kajal killed. When the children realize what their fathers really did, they refuse to back down, their determination set in stone.
Eventually, the parents play a nasty trick. They make the four lovers believe that they have changed their ways and are ready for their children to marry the person they wish to. On the way to Raja and Madhu's engagement ceremony, the fathers have Kajal kidnapped. Raja saves her from being raped and comforts her. Meanwhile, without their knowledge, photos are taken of them. The fathers then show the photos of Raja comforting Kajal at the party. Taken out of context, the photos make it look like Raja and Kajal are being intimate with each other. Raja and Kajal are willing to prove their innocence, but the fathers keep them away. To make matters worse, Kajal's uncle falsely testifies to the fabricated illicit affair between the two. In fact, Kajal's uncle was paid to lie to Ajay and Madhu.
Ajay and Madhu break up with Kajal and Raja, and the fathers' plan to create a rift between Ajay and Raja, once the best of friends, succeeds. The situation worsens further when Ajay and Madhu think that Kajal is pregnant with Raja's child. They tell Raja and Kajal that they are getting married, which is what their fathers wanted all along. After hearing this, Kajal tries to kill herself, but Raja stops her. He attacks Ajay and Madhu. Raja tries to rape Madhu, but Ajay saves and comforts her. The police beat Raja brutally and Kajal pleads the fathers to release him. The fathers agree, but on the condition that Kajal and Raja leave the country for good. Kajal agrees and Raja is set free.
Ajay and Madhu's wedding is about to start when Ajay's uncle shows them pictures of Ajay comforting Madhu, taken out of context. This proves that Raja had attacked them to recreate the situation he and Kajal had been in, which in turn proved that Raja and Kajal are innocent and that the fathers did all this. Kajal's uncle also confesses. Angry and heartbroken, Ajay almost chokes his father to death but his conscience stops him. He then tries to kill himself but Madhu stops him. Ajay and Madhu rush to the shipyard and succeed to stop Raja and Kajal. They ask for forgiveness and the lovers get back together. The fathers arrive, having realized their grave mistake, and also ask for forgiveness. The lovers forgive them and the film ends on a happy note.
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