Police spoke on condition of anonymity in line with policy.
The daylong battle included a team rappelling from helicopters and several large explosions.
A chain of militant attacks across India's financial capital that began Wednesday have left at least 143 people dead.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
MUMBAI, India (AP) - A fresh battle raged at the luxury Taj Mahal hotel Friday evening as commandos fired grenades at the Mumbai landmark while other forces ended a siege at another five-star hotel.
Another team rappelled from helicopters to storm a besieged Jewish center before a large explosion rocked the building and blew a gaping hole in the wall, two days after a chain of militant attacks across India's financial center that began Wednesday night left at least 143 people dead.
After hours of intermittent gunfire and explosions at the elegant Taj Mahal hotel Friday, the fight heated up at dusk when Indian forces began launching grenades at the hotel, where at least one militant was believed to be holed up inside a ballroom, officials said.
Commandos had killed the two last gunmen inside the nearby Oberoi earlier in the day.
"The hotel is under our control," J.K. Dutt, director general of India's elite National Security Guard commando unit, told reporters, adding that 24 bodies had been found. Dozens of people
- including a man clutching a baby - had been evacuated from Oberoi earlier Friday.
The airborne assault on the center run by the ultra-orthodox Jewish outreach group Chabad Lubavitch was punctuated by gunshots and explosions
- and at one point an intense exchange of fire that lasted several minutes - as forces cleared it floor by floor, according to an Associated Press reporter at the scene. By Friday afternoon, the commandos had control of the top two floors.
Just after dusk, a massive explosion shook the Jewish center, blowing out windows in neighboring buildings. Gunfire and smaller explosions followed the first blast.
One camouflaged commando came out with a bandage on his forehead, while soldiers fired smoke grenades into the building and a steady stream of gunfire reverberated across narrow alleys.
Israel's ambassador to India, Mark Sofer, said they believed there were up to nine hostages inside. Their fate was not clear. Sofer denied reports that Israeli commandos were taking part in the operation.
Moshe Holtzberg, a 2-year-old who was smuggled out of the center by an employee, is now with his grandparents. His grandfather told Israel Radio on Friday that he had no news of Moshe's parents.
More than 143 people were killed and 288 injured when suspected Islamic militants attacked 10 sites in Mumbai starting Wednesday evening.
At least eight foreigners are known to have been killed so far and 22 more have been injured, said top security official M.L. Kumawat. The dead include three Germans, and one person each from Japan, Canada, Britain and Australia. The nationality of one more victim is unknown.
The injured include five from Britain, three Germans, two Americans, two from Oman and one each from Norway, Spain, Canada, Finland, Philippines, Australia, Italy and China. Two more were unknown.
Security officials said their operations were almost over.
"It's just a matter of a few hours that we'll be able to wrap up things," Lt. Gen. N. Thamburaj told reporters Friday morning.
The group rescued from the Oberoi, many holding passports, included at least two Americans, a Briton, two Japanese nationals and several Indians. Some carried luggage with Canadian flags. One man in a chef's uniform was holding a small baby. About 20 airline crew members were freed, including staff from Lufthansa and Air France.
"I'm going home, I'm going to see my wife," said Mark Abell, with a huge smile on his face after emerging from the hotel.
Abell, from Britain, had locked himself in his room during the siege. "These people here have been fantastic, the Indian authorities, the hotel staff. I think they are a great advertisement for their country," he said as security officials pulled him away.
The well-coordinated strikes by small bands of gunmen starting Wednesday night left the city shell-shocked.
Late Thursday, after about 400 people had been brought out of the Taj hotel, officials said it had been cleared of gunmen. But Friday morning, army commanders said that while three gunmen had been killed, two to three more were still inside with about 15 civilians.
A few hours after that, Thamburaj, the security official, said at least one gunman was still alive inside the hotel and had cut of electricity on the floor where he was hiding. Shortly after that announcement, another round of explosions and gunfire were heard coming from the hotel.