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Raids are being conducted at several places after the reports suggested that the squad plans to carry out a strike around Christmas or on New Year's Eve.
The alert comes even as the police are hunting for a Lashkar-e-Tayiba terrorist who managed to escape while his two associates were gunned down in an encounter in Tughlaqabad area in South Delhi on Saturday.
The terrorists, all Pakistanis and in their 20s and 30s, have been identified as Abu Zarar [leader], Abu Farkan, Ali Mohammad, Ejazul Haq, Nissar-u-din and Mohammed Salim alias Khalil, police sources said.
Zarar, said to be hailing from Lahore, was recently involved in an attack on the police in Srinagar, the sources said.
Joint Commissioner of Police (Special Cell) Neeraj Kumar confirmed that intelligence inputs had suggested presence of terrorists in the capital but refused to share details. "We are on an alert to thwart any terrorist strike and working to foil that."
The JeM terrorists might be looking for a crowded place or aiming to target some VIP, the sources said.