Freedom New Zealand

The Times of India, India's leading online news website, reports at least seven westerners are among 15 hostages being held captive at Mumbai's top luxury hotel the Taj Hotel.

Details of the hostage situation came from a hostage who managed top escape.

Kiwi David Clemmett and his wife Vinka are trapped in their hotel room in the hotel, but are not thought to be hostages.

The news website says at least 80 people are dead after a series of co-ordinated attacks by terrorist gunmen at seven sites in Mumbai, including two luxury hotels and other popular tourist locations.

At least 250 are reported injured.

A British witness has told Indian TV the attackers wanted anyone with a British or American passport.

Mr Clemmett says they heard pistols, rifles, shot guns and grenades.

He says they have locked themselves in the room, barricaded the TV unit against the doors and pulled the blind down to protect themselves from broken glass.

He says smoke filled their room from fires within the hotel and they had to rip the smoke detector off the wall.

Indian police said gunmen attacked two luxury hotels, the Chhatrapati Shivaji Terminus station in southern Mumbai and Leopold's restaurant, a Mumbai landmark.

Another luxury hotel, Oberoi Hotel, is on fire following the attacks.

The gunmen, some also armed with grenades, attacked targets including the hotels, a cafe, and a train station, police say.

The Times of India reports the head of India's anti-terrorism unit has been killed.

The news website says the terrorists hijacked a white police jeep near Metro cinema in South Mumbai.

Firing was also reported near Maharashtra state assembly building in South Mumbai.

A.N. Roy, a senior police officer, said police were battling the gunmen.

The targets include businesses frequented by international visitors.

"The terrorists have used automatic weapons and in some places grenades have been lobbed. The encounters are still going on and we are trying to overpower them," Roy said.

"It seems to be a terrorist attack, many places under siege by gunmen," A.K. Sharma, a Mumbai government railway police commissioner, told local television.

The Associated Press reported that police said gunmen had attacked the Chhatrapati Shivaji Terminus station in southern Mumbai and Leopold's restaurant, a Mumbai landmark. A reporter at the restaurant says it is pitted with bullet holes and blood stains on the floor.

New Zealand's Ministry of Foreign Affairs has not yet issued updated travel advice for India.

- AP, NEWSTALK ZB, NZ HERALD STAFF