Two huge bags, one containing a large amount of cash and several credit cards, and another with arms, ammunition and grenades have been found at the Taj Mahal Palace and Towers, a defence official said in Mumbai on Thursday. The Indian Navy has deployed 25 marine commandos at the Taj hotel and another 10 at the Oberoi Trident, where terrorists continue to hold people hostage.

So far, 300 people had been rescued from the Taj alone, defence spokesperson Capt M Nambiar said.

Security personnel are conducting a systematic search of the premises to look for explosives and arms.

At least 101 people have been killed and 250 injured since Wednesday night when terrorists struck in seven places, including hospitals and hotels, in the city.