Prohibitory orders under Section-144 were in force in the area surrounding the house cordoned off since Wednesday.
Gas and power supplies to the three-storey house have been cut off.
A SWAT and a bomb-disposal team joined counter-terror police and RAB personnel who were surrounding the house at 8am.
The sound of firing was heard a couple of times at 11am.
A policeman named 'Saikat' was removed from the area in an ambulance for falling ill while 'putting gas inside the hideout', said Shafikur Rahman, police's deputy inspector general for Chittagong range.
Detectives believe the multiple militant operatives inside the house are armed with explosives.
The police have been making announcements to instruct locals to stay safe during the raid. The road from Kotbari to BIRD has been sealed.
Police said the media will be briefed after the raid is completed.
Police encircled the house on Wednesday, the day before voting was held for electing the new mayor of Comilla City Corporation.
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