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The story is about a small time thief cum adorable rouge, Guru(KK Menon), who holds a ramshackle garage, in partnership with Ganpat (Dilip Prabhawalkar). Guru steals swanky cars and gives them an alteration, so that they can sell them for shipshape profits. The twist comes when one night Guru sets his eyes on an unattended Merc parked outside a brothel. He whips the car, and while Ganpat and he were working on its modification, they found an amount of Rs 1 crore in the boot. Soon after they start hallucinating about the sudden change in their lives and begin building castles in the air. Very less do they infer that the swanky car and the moolah belong to the nasty gangster cum loan swindler Faujdaar (Anupam Kher)!

Faujdar owns a nightclub called 'Jhoom' and is a big devotee of a Babaji. Guru charts recoil and attempts to sell the filched Merc to a hitman,Suleman Supari (Rahul Dev). Suleman who is Faujdaar’s friend,identifies the car and inform him. Scared for his life, Guru shrieks that the money is in Ganpat's garage. Hearing this Faujdaar asks his conman,Lovely, to accompany Guru in order to recover the cash.

Another twist comes, when Ganpat meets an accident, resulting in a temporary memory loss. Unknown to Guru, the suspicious Ganpat has concealed the cash in what he estimates to be the secured place in his garage, to keep the thieves at bay from robbing them off their wealth.

Guru can't trace the money and has no idea where Ganpat has kept it. Faujdar decides to kill Guru, who begs for his life and asks for another chance. Seeing this, the sadistic Faujdar gives him the grace period of three days to set things straight.

A crestfallen Guru, with no hopes, almost abandons himself to death, when he meets Mona, who is a small time con woman. Coincidently, she had teamed up with Guru few years back to perform a con job. The burglary had been successful, but Mona had deceived Guru and absconded with all the cash. Right now she, is planning to trick a builder, Pachisia (Yashpal Sharma), for which she requires a partner. Since Guru is also looking for the things to straighten, she non willingly teams up with Mona(Rimi Sen).

Yet again, they successfully trick the builder and extorted a huge sum of money, only to lose it again at the unexpected turn of fate. This leads to an exciting climax, leading through a chain of comical events, funny situations and spine chilling moments.

In the movie Chunkey Pandey plays double role as Sikandar Khan the actor and his body double, bringing in his own dose of laughter.

The questions arises, will Guru be able to give back the cash to Faujdar? Will Mona get the better of Guru? Will Ganpat be able to regain his memory? As the story unleashes layer after layer, find out will the sankat be over for all the people involved?

Sankat City, is a black comedy and fast paced entertainer of the year.