Tensions ran high in the Jamia Nagar locality of South Delhi [Images] as news of one religious place being transgressed reportedly by police, during the encounter with terrorists on Friday.

The house where terrorists were holed up lies very close to a religious place. Once the firing stopped, large number of people thronged the narrow lanes of the area and shouted religious slogans.

"We are all against terrorism, then why was our religious place targeted," asked one of the residents.

Refuting any such news, DCP South Delhi HGS Dhaliwal clarified that no religious place was used during the encounter.

"The firing was done from a place near the religious place," he said.

The tensions were fuelled by rumours that the operation was concocted by police and no fire was shot from inside the house.

Meanwhile, one media personnal, who was informing his office about the encounter, was abused by the local residents. They claimed that no shot were fired from inside the house and the encounter was a blatant lie.

Neighbours of the house where entire operation unfolded, however, confirmed that gun shots were fired from both sides.

"It all started at 10.30 in the morning. We were preparing to go to our work when some police people came in the area," said an eye-witness who refused to disclose her identity.