The story continues with DCP Yashwardhan (John Abraham), a strong and no-nonsense police officer who takes down criminals while still feeling the pain of losing his wife Maya (Genelia D’Souza) five years ago. One day, a novel is mailed to him by his best friend, Harish, a R.A.W. agent. Yash disregards it, but then learns that three R.A.W. agents were murdered, one of them being Harish.
Shocked, Yash takes a second look at the book, in which Harish has included a clue, indicating that a “spy” is in the Budapest embassy, leaking information about RAW agents as a plan to destroy them. When Harish is branded a traitor to India as per RAW protocol, Yash decides to clear his friend’s name. He relates the clue to R.A.W. head Anjan, who teams him up with Kamaljeet Kaur (Sonakshi Sinha). The two butt heads but decide to stay out of the other’s way on their mission in Budapest. They reach a safe house that Yash realizes is a trap: he escapes with KK right before the house explodes. Yash suspects Shiv Sharma (Tahir Raj Bhasin) to be the mastermind who is providing locations of Indian RAW agents to Chinese spies. KK realizes that Yash is right, and confronts Shiv at his house, but is knocked out. Shiv flees, and after a chase, is caught and arrested.
Yash and KK must bring him to India alive but constantly have to fend off Shiv’s men at every turn, at a loss on how his men are finding them. When they try to move Shiv to India via helicopter, he is shot by a Chinese spy and rushed to the hospital. Yash quickly realizes that this was simply a ploy for escape: Shiv is indeed alive. He calls Yash to taunt him, and tells him to check KK’s watch. Yash does so, finding a tracking chip that Shiv placed in it when she was knocked out. This was how Shiv’s men kept hunting them down. Yash defends KK when Anjan questions her about the chip, explaining that he trusts her, and the two start to get along.
Yash and KK get Shiv’s location from an informer, club dancer Martinez, but fail to catch him. Shiv gets two more RAW agents killed, and Yash and KK realize Martinez is actually working for Shiv. Yash finds a clue in Shiv’s old apartment, and discovers that the real Shiv Sharma has been dead for ten years: Shiv is using a fake identity. His real name is Rudra Pratap Singh, son of former RAW agent Karan Pratap Singh, who had been working for RAW for thirty years before he was killed. As a result, Rudra’s father was disowned from RAW and branded a traitor by Cabinet Minister Brijesh Yadav. Unable to bear this, Rudra’s mother committed suicide. Yash realizes that Rudra’s target is not RAW but Brijesh.