In a grenade attack at a prayer hall in Amritsar's Rajasansi village on Sunday where three people were killed and around 20 injured, the police said. People who saw this disaster said that two men on a motorcycle, with their faces covered, threw a grenade at the Nirankari Bhawan, where a religious ceremony was taking place, and fled.

A high alert was issued that six to seven Jaish-e-Mohammad (JeM) terrorists had entered the state and were "planning to move towards Delhi". The police are analysing the CCTV footage and looking out for clues inorder to identify the attackers, they are also not ruling out the terror angle.

Punjab Director General of Police Suresh Arora told the media "It (this incident) appears to have a terror angle. Because it is against a group (of people) and it is not against any individual. There is no reason to throw a hand grenade on a group of people, so we will take it as a terrorist act. Till proven otherwise, prima facie we will take it as that,"

This incident happened just eight kilometres away from Amritsar airport. Around 20 injured have been taken to the hospital and the bodies of the victims sent for post-mortem said a senior officer, Surinder Pal Singh Parmar.

Hundreds of devotees gather here for prayers and kirtan every Sunday and about 250 people were inside the hall when the attack took place. The attackers also threatened devotees with a gun before spreeing the explosive into the prayer hall.

Home Minister Rajnath Singh has promised strongest possible action for this criminal act of violence. He also announced Rs. 5 lakh for the victims of the blast and free treatment for the injured.

"My condolences are with the families of those who lost their lives in this incident. It is an attempt to disturb peace in Punjab. All the security agencies are on high alert and coordinating with each other to maintain peace," said Sunil Jakhar, Punjab Congress chief.

Delhi CM Arvind Kejriwal called it a "cowardly attack". "We strongly condemn it," he tweeted. Congress leader Renuka Chowdhury said "this is a dangerous thing to happen".

Army Chief Bipin Rawat recently warned about the attempts being made to "revive insurgency" in Punjab and had urged people to stay alert.