The terrorists were killed in a raid on their hideout in Naraynganj, outskirts of Dhaka, Moniru Islam told reporters. Bangladesh-born Canadian citizen Tamim Ahmed Chowdhury, the alleged mastermind of the attack on the cafe, was among those killed, he said.

On July 1, 22 people were killed in a brutal attack on Gunmen launched an assault on the cafe packed with customers in the Bangladeshi capital, before police stormed the building early this morning to free some hostages. Six gunmen were killed and a seventh captured.

Bangladeshi Rapid Action Battalion (RAB) have started an operation to free the hostages, the report said. After hours of quiet, a fresh round of heavy gunfire took place on Saturday morning, an eye witnesses told CNN.

Fayad Munaim, who could hear intense gunfire coming from the direction of Holey Artisan Bakery, said the shots lasted about 10 minutes. Then the barrage stopped. As the police exchanged fire with the gunmen, the attackers threw explosives, a source at the scene said. The IS group claimed that its gunmen killed 24 people and injured 40 others in the attack.

Meanwhile, security forces in Dhaka clarified that only two police officials were killed and at least 15 people were injured. Chief of the Rapid Action Battalion Benjir Ahmed had said "derailed youths" entered the restaurant and launched an attack.

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