Here is a report from India itself that actually contains information. Turns out the victims were tortured before being killed, no doubt the result of Abu Ghraib and Guantanamo. The special forces that finally won the battle after they had determined that the hostages were all dead did not play nice:
The doctors who
conducted the post mortem said the bodies of the terrorists were beyond
recognition. "Their faces were beyond recognition."
There was no
way of identifying them," he said. Asked how, if this is the case, they
knew the bodies were indeed those of the terrorists, he said: "The
security forces that brought the bodies told us that those were the
bodies of the terrorists," he said, adding there was no other way they
could have identified the bodies.
An intelligence agency source added: "One of the terrorists was shot through either eye."
A senior National Security Guard officer, who had earlier explained the operation in detail to rediff.com,
said the commandos went all out after they ascertained that there were
no more hostages left. When asked if the commandos attempted to capture
them alive at that stage, he replied: "Unko bachana kaun chahega (Who will want to save them)?"
Good thing for them they don't have the ACLU.