Raees, from Fatehpur, Gujarat gets involved in illegal liquor trade at a very young age. Along with Sadiq, Raees works for a notorious gangster Jairaj, smuggles alcohol illegally by bribing the police. Though he is a smuggler, he lives by the philosophy, as taught by his mother that every occupation is good, and no religion is greater than any occupation till it does not cause any harm to anyone. He decides to part ways with Jairaj and start operating on his own. He meets Musabhai and Nawab in Mumbai, and with their help he starts his bootlegging business. Meanwhile, an honest police offer of the IPS cadre, J. A. Majmudar, wants to end this illegal liquor trade.
Raees is already in love with Aasiya and she accepts the proposal to marry him and the two soon get married. Majmudar gets transferred to Fatehpur, and starts a major crackdown on alcohol dealers. All the dealers decide to collaborate except Raees. Majmudar continues to gather intelligence about Raees, and Raees consistently find ways to avert him and continues on with his trade. Due to his differences with Raees, Jairaj tries to get Raees killed. Musa informs Raees about Jairaj’s attempt and Raees survives by killing Jairaj and his associates at a bar.
Majmudar gets transferred from Fatehpur to Kutch. Gujarat’s Chief Minister and Pashabhai, dealing with politics supports Raees for liquor and money. With his money, intelligence and tact, Raees wins over the administration. He also assists his community by offering employment to women to sew cloth bags, which he uses to smuggle alcohol and get them delivered to homes. In the meantime, Aasiya delivers a baby boy. Raees is offered a project by the Chief Minister to eliminate the illegal occupants at a land and construct a housing project. Still a hindrance to Raees’ business, Raees manages to get Majmudar transferred to control room department, where he thinks he won’t be able to impact his business at all. However, tables turn with Majmudar’s transfer as he starts listening in to all the Raees’ telephonic conversations and get the updates of his every move. Pashabhai plans a march to end illicit liquor trade, as a part of his election campaign, which would pass through Raees’ area. Raees assaults him the march. The CM advises Raees to go to jail for a while for his act but assures he would get all the facilities and carry on his trade from there. While still locked up, the CM and Pasha form an alliance, that could potentially wipe out Raees’s whole business. To counter them, Raees decides to fight the election from jail and wins.