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Early on Friday morning, sporadic gunfire and explosions continued at a Jewish centre where at least 10 Israelis were trapped or being held hostage.
Police said militants were also still holed up at the Taj Mahal hotel and the nearby Oberoi-Trident hotel along with an unknown number of hostages.
Prime Minister Manmohan Singh pinned blame for the attacks on militant groups based in India's neighbours, usually an allusion to Pakistan, raising prospects of renewed tension between the nuclear-armed rivals.
He warned of "a cost" if these nations did not take action to stop their territory being used to launch such attacks.
An estimated 25 men armed with assault rifles and grenades -- at least some of whom arrived by sea -- fanned out across Mumbai on Wednesday night to attack sites popular with tourists and businessmen, including the city's top two luxury hotels.
Police said at least seven of the attackers were killed and nine suspects had been taken into custody. They said 12 policemen were killed, including Hemant Karkare, chief of the police anti-terrorist squad in Mumbai.
At least six foreigners, including one Australian, a Briton, an Italian and a Japanese national, were killed. Scores of others were trapped in the fighting or were being held hostage.
More than 300 people were wounded.
Commandos battled the militants through Thursday, often room to room in the hotels, to rescue people, police said. Flames billowed out of the buildings and loud explosions were heard during the fighting.
Mumbai, a city of nearly 18 million people that is the nerve-centre of India's growing economic prowess and home to the "Bollywood" film industry, was virtually shut down on Thursday as the battles raged.
But in a reflection of the poverty that sits cheek-by-jowl with the upmarket shops and restaurants in the city, hundreds of people were stretched out asleep on pavements and handcarts near the scenes of fighting.
The sea-facing Marine Drive in front of the Oberoi-Trident is a favoured spot for early morning walks, and some regulars came out for their constitutional despite the tension.
"I hear they (the security forces) have relaxed the rules a little so I came for my morning walk but I did not see any of the regulars," said Raja Ram Patil, 54, a local businessman.
British Prime Minister Gordon Brown said the attack would be met with a "vigorous response".
U.S. President-elect Barack Obama condemned the incident. Obama, who favours a regional solution to the war in Afghanistan and is encouraging Pakistan and India to make peace over Kashmir, was monitoring the situation closely, an aide said. [nLR502129]
The Times of India published a photograph of one of the attackers, dressed in a black T-shirt and holding an assault rifle with a backpack over his shoulder.
At least some of them had come ashore in what police said was a rubber dinghy. They commandeered a vehicle and sprayed passersby with bullets, and fired indiscriminately in a train station, hospitals and a popular tourist cafe.
ANTI-TERRORIST COP
"The situation is still not under control and we are trying to flush out any more terrorists hiding inside the two hotels," said Vilasrao Deshmukh, chief minister of Maharashtra.
The death toll was only an estimate in an attack which brought the biggest chaos to the city since serial bombings in 1993 killed 260 people and injured hundreds.
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I will vote for the Congress only - who else can provide so much mayhem
It is high time the Union and State Home Ministers quit !! How many more lives , need to be lost , before they go !! it was pathetic to see cops without protective gear taking on the terrorists. What a shame , we do not have the money to equip them . All the residents of Mumbai feel very insecure , pl wake up Mr Vilasrao Deshmukh
I believe it is ppur leadership that has failed the country. Every month we have multiple terror attacks. The politicians play havoc with the police force manipulating it for their own senseless purposes. It is time I think that we must reevaluate our multiparty system which is only vote based in favour of parties interested in the progress and security of our country. It seems to me a single party does a far better job of governing the country than this dumb coalition government. Let us vote for a strong national party and not for the regional parties who are only interested in small time gains and short term targets. All politicians who in any way try to divide the country must first be severely punished themselves because it is these who by harbouring the criminal elements are the biggest criminals. Gosh its so frustrating that a country of inteeligent people like ours has the misfortune of being governed by thugs and no long term respite from them seems forthcoming.
I'am a frenchman , I visited India many times in the last 30 years
The message that comes out for all politicians is let ATS do its job free for any political pressure. People like Advani questioning the work of the ATS when it suits tehm and condemning journalists for doing the same, does not help.
wake up patriots
Maybe the Congress govt should arrest ALL Hindus in Mumbai and torture them; that should teach them ! They are giving Muslims such a bad name but indulging in activities that are their sole prerrogative.
I feel Mr Shivraj Patil will have a busy next couple days. How many suits should he change? Is it per-interview or per hour. Tough choices lay ahead for him
we are ufit run to rule the the country , When Mr Seshan explained what is the power of Election Commisioner , we should have supported him as President , wen Mr Kalam supported for next term as president no one is Intrested , When MrAlexander( Ex Governor of Maharastra) was proposed for Pressident some political not supported. What it shoes , the Culprit is only Plitician .
This is not the first time this type of terrorist attack happening in our country.In such a grieve situation let us forget the communual
(a) Sadhvi is responsible. How cruel can Sadhvi be ? Now whole world knows how powerful Sadhvi and RSS is. Simi and others are innocent. (b) So by the by, where is my dear MM ? He probably is sleeping since after all he spent sleepless nights when 1 minority was holed up. (c) Where is Home minister ? Ooops - I am sorry - He is probably changing his dress. (e) My dear secular IE, Times of India, and in Particular "The HINDU" News Paper - Congrats - You also are cause of this mayhem ! You Newspapers have achieved what you wanted - nothing more is left. Thanks for everything that you do ! Jaihind
WAKE UP HINDUS. OUR CRAZY BROTHERS AND SISTERS ARE DESTROYING HINDUISM THE WAY THE TALIBANS AND JIHADIS ARE RUINING ISLAM. MARK MY WORD, HINDU TERRORISTS DID IT.
My condolences to the people killed in the terrorist attack. Police/ATS/Army/Fire are doing a great job in rescuing the people and hats off to them. India should focus on terrorism and fight for Independence once again this time from the terrorists. Politicians should stop distubing the country by agitating/deviating the focus and fight against terrorism.
Horrendous ! ... as much as the the impunity of the strike and tragic deaths, the unruffled continuance in office of that lampoon or langoor shiv raj patil and top man at I B , PC Haldar. Yes , the buck stops at them both but who cares. At this hour of the country it got to be only MODI who can retrieve the downfall of the dignity of country. I must not be misunderstood to be canvasser for RSS. Kudos to shekher gupta for keeping the spirit of freedom alive by keeping the the channels of expressions open ,albit with limited audience.
I salute all the ATS officer shot dead in yesterdays terrorist attacks. Brave offiers like hemant karkare and other has laid their to defend our country, we should be proud of them. This is a sorrowful incidents and shameful for people who doubted ATS role in malegoan case. I think people must have got a slamming answer as of now. Please keep away from investigation and try to understand that there is no treat to any religion, its only political game played by BJP. Please don't spread communal hatred and live in peace togther. Let the officals clear our country from all the terrorism irrespective of religion. I never doubted pradeep sharma, he was also a honest man, for those who claimed for the investigation are also politicans. Time to understand the face and minimize terror incidents by supporting our officials. Jai Hind
Its very sad to see some of my fellow country mens comments. I am an Indian with a belief in islam. I AM AS INDIAN AS YOU ARE.I condem acts of terrorisum as any of you do. my family is prone to any of these attacks as your family is. Deepest condolences to Hemant Karkare. we have lost a true Indian.
The primary function of a government is to provide for the safety of life and limb of its citizens. The Gandhi-Singh dou has failed miserably on this score. For God's sake go! Get out! Let more competent people take the helm and then reasonably attempt to rid the country of this scourge. We have had enough of incompetence and politics.
I fon't have words to express my anguish..india and indians are under siege..this is an attack on our way of life..these terrorists are now striking with impunity...what can i say..plz bring the BJP back and put KPS Gill in charge of anti-terrorist activities...
First of all, I send my condolence to the family of Mr. Hemant Karkare. I believe, I saw him on CNN while he was given life a jacket. This brave man not only stood up against Mujahideen terrorists, but also took Hindu terrorists to task. As late as yesterday, he had received life threats which were reported in the media.He was also criticised by the BJP for doing his job. India has lost a man of great calibre, he will be missed by everyone. After this terrorists attack in Mumbai, India and its people should stand shoulder to shoulder to pow pow all kinds of terrorists, and it is about time India should ban all kinds of terrorists organisations.
A sad day for those living in India. I am a regular visitor to India and hearing what is happening breaks my heart. I am sure that in the spirit of Indians, we will overcome this if we all pull together. My thoughts are with the families of those who have been killed. Let us also hope that the ATS are strong and brave to get those involved, than dish out sentences that send strong messages out that the India population will not put up with this in there back yard.
I feel sad and angry for lives lost. My anger turns to sarcasm to ask, "Should we adopt stance of spirit of Bombay and do nothing about these attacks?". Is minority vote so important than India and their origin for Shivraj Patil and Manmohan Singh? MM Singh joined the same party that killed his own fellow sikh men and I am not surprised if he is clapping his hands as if there was fireworks at Mumbai. I am surprised that very few terrorists get the capital punishment and we keep feeding terrorists like Afzal Guru in jails. I feel ashamed of my fellow Indians who voted Congress to power. It is a sad day for me to hold my head down.
UPA govt needs to go asap. They are busy blaming hindus for terrorism while their half brothers are busy killing people. congress needs to go as of yesterday.
HOME MINISTER PATIL - RESIGN........PM M. SINGH - QUIT.....YOU ARE ALL USELESS.......HOW MUCH YOU WILL CAUSE THE COUNTRY TO BLEED...SHAME ON YOU ALL....SHAME UPA....SHAME....MAHA GOVT......
how come there is never any intellegence about these terrorist activities? what is the police and the politicians doing? these killings need to be stopped and all criminals given the death sentence.
I feel sad