Security forces managed to free some people from the hotels, but the stand-off continued throughout the day.
A previously unknown group calling itself the Deccan Mujahideen has claimed responsibility, but correspondents say this could be a hoax or an assumed name for another group.
Mumbai's main railway station was also hit. People fled the huge terminus leaving their luggage when gunmen opened fire. Ten people were killed.
Some people trapped in the hotels were forced to climb down using curtains or jump to safety.
Some people trapped in the hotels were forced to climb down using curtains or jump to safety.
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