The kid does three different songs before the house lights are mysteriously cut. We see some of the audience panicking as it looks like a sheet or blanket is pulled over the youngster's head. Muffle cries are heard for a moment, then we cut outside. We see Yadav and one of his underlings walking down the street. Yadav asks for a light for his cigarette, but Constable doesn't have one. Yadav light-heartedly chastises him for not carrying matches when he knows Yadav smokes like a chimney. They pass a dark figure, and Yadav stops him to ask for a match.
The reverse angle shows us that he's got Charandas! Charandas fumbles with the kidnapped child (still under wraps) and produces a small box of matches, and hands it to Yadav without turning around. Yadav thanks him and lights up. Just at that moment, the kidnapped boy starts to make muffled noises indicating that he's not entirely willing to be carried around by the sweaty, dreadlocked, black magician. Yadav takes a closer look, and realizes that Charandas does indeed look a lot like the sketch they produced earlier.
Yadav reaches into his jacket for his service pistol. Charandas sees that he's in hot water and shoves the boy into Yadav's chest and makes a break for it. Yadav hands the boy off to his sidekick and starts to chase Charandas down the street. The two men exchange gunfire as they run down the road (a note to the sound engineers on this movie - the sound of a gun being fired is not the same as the sound of a bullet ricocheting off of a rock. Every time Charandas shoots, it makes the ricochet noise.) until finally Yadav lands a shot in a non-vital area on Charandas. This doesn't stop him, but he does slow down and looks for a better way out of this.
Charandas makes his way to a department store and ducks inside (incidentally, this was when I realized that the movie was an... "homage" to Child's Play). Yadav follows, but the pace of the pursuit slows to the "two people stalking each other around a complicated area" speed. Yadav notices the trail of blood that Charandas is leaving behind him, and begins to follow it through the store.
A long chase short, Yadav finally manages to get a couple more bullets into Charandas, who then collapses into a pile of plastic dolls. He giggles with glee when he sees what he's got, and hastily tears open one of the dolls' boxes. Grasping the doll by the head and arm, he begins to chant an incantation that eventually leads to his soul being transferred into the body of the doll. As he performs this rite, the building begins to shake violently, and bursts into flames as the chant is completed.
Assuming that Charandas is no more, Yadav waits outside as the fire trucks and ambulances arrive, along with a horde of media types. Yadav shoos them all away, saying that any statements can be heard at the police office the following day. The medics go inside the building and collect the earthly remains of Charandas, casually tossing aside the doll to get to the corpse. As they leave the room, the doll turns over and the music makes a scary noise that completely fails to impress anybody.
Some time later, we see the cops back at HQ. The efforts to return the boy to his family have gone unfulfilled, as his only family is his sister who is not at home. The constable explains to Yadav that she is a performer in a musical show, and is away for the time being. This of course gives us a chance to have our first musical number, "Mere Chahnewalo." This is a fairly standard-issue song that has nothing to do with the plot except for introducing Karisma and her gigantic hair.
After the show we see Karisma in her dressing room, taking off her makeup. She answers a knock at the door to find Raju and Yadav. Yadav explains that Raju had been kidnapped earlier, but in the course of the evening he helped to bring the evil kidnapper down.
Some indeterminate time later, we see Karisma at home talking with her agent. He's trying to get her to agree to do a show in a far-away city, but she doesn't want to leave Raju alone after what's happened. He tries to get her to leave him with friends or relatives, but she shoots down all of his ideas. After a little more persuading, she tells him that she'll think it over.
Later that evening, Karisma's friend Mona is visiting. She volunteers to stay at Karisma's house with Raju so that she can go do her show. There's a little more fussing about going to the trouble, but Mona insists and the deal is sealed. Raju isn't too keen on the idea at first, but Karisma explains that the money she makes from this show will help offset his school costs, and he warms up to the idea.
I'm not sure just how much his school costs, or how much she's being paid for this concert, but a very big deal is made of this amount. That is for now. After this scene, it's never mentioned again. Moving on!