Police inspector Arjun Yadav (Riyaz Khan) tracks Sanjay down and hits him unconscious.

Yadav
finds two diaries in which Sanjay has chronicled the events of 2005 and 2006. The film flashes
back to 2005 as Yadav reads the diary. Sanjay Singhania is the chairman of the Air Voice mobile
telephone company. In the course of business, he sends his men to meet Kalpana, a struggling
model of Mumbai, about putting up a billboard above her apartment. The owner of Kalpana's
advertising firm misinterprets this as a romantic advance and, in view of a possible lucrative Air
Voice ad campaign, encourages Kalpana to accept the overture. Kalpana thinks of it as an
innocent prank that may fetch her better modelling work and decides to charade as Sanjay's
girlfriend. Sanjay goes to confront Kalpana about this but falls in love with her at first sight. He
hides his identity and introduces himself as Sachin, and the two begin spending time together.
The diary ends with Sanjay proposing to Kalpana and promising himself that he will reveal his
actual identity if she accepts.
When Yadav is about to read the 2006 diary, Sanjay awakes and attacks him, tying him up.
Ghajini realizes that someone is trying to kill him but cannot figure out who. Sunita visits Sanjay's
flat and discovers Sanjay's plan to kill Ghajini. She takes both his diaries before finding Yadav,
beaten and bound, and freeing him. Just then, Sanjay arrives, but he remembers neither of them
and chases them out. Yadav is hit by a bus as he flees in terror, and Sunita, believing Ghajini is
the good guy in danger, informs him about Sanjay. Ghajini arrives at Sanjay's flat and destroys all
of Sanjay's photographs and notes, as well as the tattoos on Sanjay's body, so that Sanjay is left
with nothing to help him recover his memory.
Meanwhile Sanjay discovers that Sunita had warned Ghajini and he goes to her dormitory to kill
her, but Sunita calls the police and Sanjay is arrested. Back in her dormitory as Sunita reads the
diaries, the film flashes back to 2006, where it is revealed that Kalpana had accepted Sanjay's
proposal. When this diary ends abruptly, Sunita digs further and discovers that Kalpana was
travelling to Goa for a modelling assignment when she came upon 25 innocent young girls being
trafficked. She had saved the girls, who named Ghajini as the ringleader of the racket. Outraged,
Ghajini broke into Kalpana's apartment with his goons to kill her. When Sanjay arrived, he found
Kalpana stabbed. Ghajini then hit Sanjay over the head with an iron rod. Sanjay's last sight was
Ghajini brutally murdering Kalpana with the iron rod. Kalpana's last word to Sanjay was "Ghajini."