Several powerful blasts rocked the area as army's bomb disposal experts engaged in defusing the explosives laid out at different corners of the building by the militants before their deaths.
"The army's explosive experts are working inside to defuse the devices apparently through controlled explosions," an eye witness said.
An army spokesman said their assaults inside the militant hideout killed all Islamists but the 'Operation Twilight' is still underway secure the site.
Sylhet-based 17 Infantry Division's Major General Anwarul Momen is leading the operation, assisted by police's SWAT and counter-terrorism units.
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Heavily-armed commandos yesterday neutralised all four "well-trained" Islamist militants, including a woman, who were holed up in a building, during four days of siege that saw powerful blasts claimed by the Islamic State that killed six people in northeastern Sylhet city.
Army's Brigadier General Fakhrul Ahsan told the media briefing powerful "improvised explosive devices" laid by "much trained militants" at its different corners exposed the building to vulnerability requiring the military to exhaust a process ahead of wrapping up the operation.
He earlier also described the militants as "well trained" referring to an example when they hurled back a live grenade thrown by the commandos as the assault was underway.
The operation was launched after a suicide bomber on Friday night blew himself up at the international airport in Dhaka in an attack claimed by the ISIS. It came a week after an identical attack on a RAB camp in Dhaka.
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Elite Rapid Action Battalion (RAB) Intelligence Wing
chief Lt Col Abul Kalam was seriously wounded in blasts and flown to Dhaka for treatment. He was later flown to Singapore.
The attacks were carried out by the extremists from outside who were mixed up with onlookers, police said.
Hours later the Islamic State claimed responsibility for the attack through its propaganda news agency 'Amaq'.
Home Minister Asaduzzaman Khan Kamal, however, rejected the ISIS claim, saying that there was no presence of any foreign terrorist group in the country.
The commandos located the militants wearing suicide vests on the ground floor of the building and shot them dead.
The militants were equipped with small arms, explosives and grenades and laid out booby traps at different corners of the building, slowing down the military operation.
The commandos earlier evacuated 78 residents, including children from the building.
A militant couple lived for the past three months as tenants.
Residents who lived in the house as tenants said they were virtually taken to hostage with militants warning them of bombs implanted on their way out while the commandos brought them out from the top of the building making their way there from the rooftop of an adjacent structure.