In 2012, she played a pivotal role in Anurag Kashyap's crime drama Gangs of Wasseypur – Part 1. The plot (spanning 50 years) tells a story of power struggles, politics and vengeance among three crime families. She stated in an interview that this role as 'Nagma Khatoon' helped her get 11 film roles. The film premiered at the 65th Cannes Film Festival and she was universally praised for her performance. Taran Adrash found Chadda "simply brilliant from the very inception". Mansha Rastogi of Now Running said "Chadda brings a perfect blend of the strength and helplessness of a woman in the yesteryears". She reprised her role as Nagma Khatoon in the sequel Gangs of Wasseypur – Part 2. The film premiered in the Cannes Directors' Fortnight at the Cannes Film Festival with its prequel. According to Madhureeta Mukherjee of The Times of India "Chadda holds fort in the sequel too, strong and poised, she's fab", and Taran Adarsh stated she "fetches dignity to her character". Chadda received a Filmfare Award nomination in the Best Supporting Actress category and won the Filmfare Critics Award for Best Actress.