Karim Khan accepts the blame for a murder that his boss, Don had committed and is consequently sent to prison. When Khan's wife Razia visits Don to collect her husband's salary, he tries to rape her but she escapes. Don is then arrested by Inspector Anwar.
Soon Inspector Anwar and his wife Salma's only son Iqbal develops a heart condition which can only be cured with a pacemaker. Since the only chemist selling the pacemaker belongs to Don, Inspector Anwar is blackmailed by Don's goos to release Don in exchange for the pacemaker. Anwar reluctantly agrees and gets the pacemaker for his son which happens to have the number 786 written on it.
Later on Don's henchmen kidnap Iqbal, but before they can kill him, he is rescued by Razia, who swaps him with her own dead infant. Sadly Razia is killed by Don's goons after they hit her with their car. Thinking that her son is dead, Salma runs out into the middle of the road in shock, is hit by a passing truck and loses her eyesight.
When Karim Khan is released from prison, he is handed Iqbal, whom everyone thinks is his son. He then kills Don to avenge his wife's death. Before being arrested by the police, Khan hands over the infant to Salma, asking her to raise him until his sentence is completed. He names the child "Allah-Rakha".
Allah-Rakha grows up to be an honest and brave young man but is unable to gain admission into the University due to corrupt Mr Khera (Anupham kher). He resorts to running a roadside "Panch Tara" (as in five star) hotel.
Khera then frames Allah-Rakha as being the mastermind behind a series of fatal TV bomb attacks that were talking place all over town. Allah-Rakha is arrested and in prison is reunited with his father Karim Khan.
When Karim Khan is released from Jail he's confronted by Don's son, Don Jr. who has come to avenge his father. He shoots Karim Khan but the latter survives. When Don Jr. tries to kill Allah-Rakha, he is killed instead. Allah-Rakha then switches places with him and assumes the guise of Don Jr. while the world thinks that Allah -Rakha is dead.
When Karim Khan regains consciousness in the hospital, he immediately seeks out Don Jr. and wounds him seriously, not knowing that he is in fact Allah-Rakha in disguise. In the hospital while operating on Allah-Rakha, the doctor discovers his 786 pacemaker and thus reveals that he is in fact Inspector Anwar and Salma's son Iqbal.
Allah-Rakha aka Iqbal, with the help of Khera's daughter Julie, telecast the video in which Khera admits to being the man responsible for the TV bombs as well as a host of other crimes. Khera and his men are arrested while Iqbal is reunited with his family.Jackie Shroff as Allah RakhaShammi Kapoor as Karim KhanWaheeda Rehman as Advocate Salma AnwarBiswajeet as Police Inspector AnwarDimple Kapadia as Julie KheraMeenakshi Sheshadri as RaniBindu as BanooAnupam Kher as R.S. KheraGoga Kapoor as GogaBob Christo as DonGulshan Grover as Jaffar AnwarRamesh Deo as Police InspectorMushtaq Merchant as Gullu UstadMac Mohan as GoonSudhir as GoonNarendrasinh Dilipsinh as Rana
"Allah-Rakha" was Ketan Desai's directorial debut. Desai had assisted his father, notable filmmaker Manmohan Desai, on many of his films. Just like his father, Ketan also planned on casting superstar Amitabh Bachchan in the lead role. The film was written specifically with Bachchan in mind but because Bachchan had joined politics and was not working in movies during that time, Desai had to cast Jackie Shroff. In an interview, Shroff said that all the hero's costumes for the movie had been tailor made to Bachchan's specifications and thus he literally was stepping into Bachchan's shoes.
The film does have quit a few connections to Manmohan Desai's earlier movie "Coolie":In both the movies, the protagonists name is "Iqbal" and his mother's name is "Salma", a role played by Waheeda Rehman in both movies.Both movies were set in a Muslim background.The scene showing people boarding the ship to go for pilgrimage is the same one used in both movies."Allah-Rakha" is the name that Jackie's character is given in this movie by Karim Khan while in "Coolie" it is the name of Amitabh's falcon.In this movie Iqbal's pacemaker has the number 786 written on it while in "Coolie" it was Amitabh's arm badge number.Much of the background music used in both movies is the same.
The music was composed by Annu Malik with lyrics by Rajendra Krishan and Prayag Raj.
The song "Na Amar, Na Akbar, Na Main Anthony" references four of Manmohan Desai's films: Amar Akbar Anthony, Naseeb, Coolie and Mard. All of these films had Amitabh Bachchan in the starring role.