Police sources said that the militants' three local associates -- Bansi Lal Sharma alias Fauji, Kanaiyalal Vanasi and Naveen Shanker -- were arrested from around Chhani. A case has been registered against them under Section 395, 120 (B) and the Arms Act of the Indian Penal Code. They were presented before a court on Tuesday and remanded to police custody for a week.

In their remand application, the police said investigators had to question the three as they could provide an idea about the magnitude of the terrorists' local operations.

Police sources said the militants had revealed during the interrogation that they were planning to rob a bank in the Chhani area. Fauji was supposed to provide the details about bank functioning, including the time when money was transported out of the bank. Besides, sources said, he had also promised the militants an escape jeep.

The other two locals, as per the investigation, were supposed to help the militants with transportation facilities. However, the police refused to divulge more information on these two local contacts.

Police Commissioner J Mahapatra, too, avoided comment, saying the police would issue a ``detailed report on Wednesday'' to the press about the case.

The terrorists are being taken to Punjab by senior police officials on Wednesday; it is believed their interrogation will throw more light on their terrorist associates there.