Mumbai: Exchange of fire intensified at Nariman House, a residential complex with a Jewish prayer hall, where also a hostage situation was prevailing. There were unconfirmed reports of a similar situation in Cama hospital. Window panes on third and fifth floor shattered.
Chief Minister Vilasrao Deshmukh said the situation was "grave". He remarked that the terrorists could have come by boats.
One terrorist holed up inside Nariman House in south Mumbai killed, says police. Six more ultras suspected to be inside the building.
Three hostages have been able to escape till now. Few people including some elderly people and children evacuated from the neighbouring building of Nariman House.
Maharashtra deputy chief minister R R Patil said nine suspected terrorists have been detained.
Five police officers, including Anti Terrorism Squad chief Hemant Karkare, were killed in the terror strikes that in all claimed the lives of at least 11 police personnel.
In this picture: India's National Security Guard commandos take positions from an adjoining building of Nariman Bhawan
The motive for the onslaught was not immediately clear, but Mumbai has frequently been targeted in terrorist attacks blamed on Islamic extremists, including a series of bombings in July 2007 that killed 187 people.
Media reports said a previously unknown group calling itself the Deccan Mujahideen had claimed responsibility for the attacks in e-mails to several media outlets.