Hostage crisis on, 1 terrorist gunned down | Pictures

TROUBLE SPOT: One of the terrorists in a house in Jammu's Chinore residential locality.

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New Delhi: At least five people including an Army officer have been killed in the ongoing gun battle between terrorists and the security forces in Jammu's Bantalab area.

Two civilians have been injured and the terrorists - holed up in the Chinore residential locality in Bantalab - have taken six people, including four children hostage.

One of the terrorists has been killed, police say. Jammu SSP Manohar Singh told CNN-IBN most residents have been safely evacuated but also confirmed the hostage situation.

Police say a group of three to four terrorists, traveling in an auto rickshaw, entered the Mishriwala area on Tuesday and opened fire at a police barrier.

They then entered the Chinore residential area in Bantalab and are still holed up there.

The terrorists are believed to be from the same group that infiltrated into India from the International border at Kana Chak on Tuesday.

CNN-IBN spoke with Billuram, owner of the house where terrorists are holed up. His family is being held hostage "The militants have entered my house. My four children and wife are inside. A boy from the neighbourhood may also be inside," he said.

IANS reports: Police said the terrorists, dressed in battle fatigues and carrying AK-47 assault rifles, entered a house in Chinore and hid there.

On their way to the house, they shot dead Shabit Hussain, a milkman, and the driver of the autorickshaw they were travelling in.

"A high alert has been sounded in Jammu due to the infiltration by three terrorists from across the international border," Inspector General of Police (Jammu Zone) K. Rajendra said.

The Border Security Force (BSF), along with police and army personnel, had launched a massive manhunt for the militants, who had entered the Indian territory at Kanachak, about 20 km north of here, after cutting the barbed wire fence.

"This is a serious situation. The intruders sneaked into the Indian side under the cover of fire, which was most probably provided by the Pakistani Rangers," a BSF official said.

The exchange of fire had lasted for nearly two hours until 2 a.m. Tuesday.

Security agencies are worried in view of the situation in Jammu.

People here have been holding rallies demanding the return of 40 hectares of government land to the Shri Amarnath Shrine Board (SASB). They plan a huge rally Wednesday at the Parade ground which can accommodate tens of thousands to give a momentum to their agitation, already in the 57th day on Tuesday.