A journalist and a scientist were among the 11 persons with suspected links to terror outfits LeT and HuJI arrested by the city police which claimed today to have foiled their plot to target MPs, MLAs and mediapersons in Karnataka.

A foreign made 7.65 mm pistol, seven rounds of ammunition and some other gadgets were seized from the arrested, City Police Commissioner Jyotiprakash Mirji said at a joint news conference with DGP L R Pachau here.

Police sources said the persons arrested in a major operation included a journalist of an English daily, a doctor and a scientist.

Mirji said all the arrests were made by CCB police yesterday in Hubli in north Karnataka and Bangalore after gathering intelligence inputs for several days.

"It was a meticulously planned operation by CCB. The arrested had links with banned outfits like LeT (Lashkar-e-Taiba) and HuJI", Mirji said but refused to share further details remarking "in the interest of the security, case and investigations no more details can be shared at this stage".

The arrested, all aged below 30, planned to target MPs, MLAs and prominent journalists, he said.

He said cases under IPC sections 120 B (criminal conspiracy), 153A (promoting enmity between different groups on grounds of religion), 307 (attempt to murder), 379 (theft) and under Unlawful Activities Prevention Act and Arms Act have been registered against the arrested.

Initial reports had said the four suspected Indian Mujahiddin(IM) activists involved in the 2010 Chinnaswamy stadium blast case were picked up by police.

According to highly placed police sources, one of the arrested had been trained in a Gulf country by the LeT on operating the terror module.

The gang was getting funds from a Gulf country, the sources said, adding that some cash had also been seized.

A laptop seized from one of the arrested has information about their targets who included a Bajrang Dal functionary, BJP MP from Hubli Prahallad Joshi, a mediahouse owner and two journalists.

The journalists had been targetted for penning articles 'glorifying' Gujarat Chief Minister Narendra Modi, they sources said, adding the photographs of the two interviewing Modi was also found in the laptop, the sources said.

"There is a visible lack of sync between the fiscal and monetary policy being followed by the government and the RBI... The Committee strongly feel that monetary policy alone cannot bring down inflation or spur growth in the absence of commensurate fiscal measures," the Standing Committee report said.

The Committee urged the government to "take urgent steps" to supplement and complement initiatives of RBI with fiscal measures to rein in inflation and trigger sustainable growth.

In order to contain inflation, RBI had hiked the repo rate (lending rate) 13 times between March 2010 and October 2011.

RBI, the Committee noted, had told its members that fiscal part of the obligation was not being fulfilled by the government.

"The Committee... Urge upon the government to take clear cut measures in this direction and implement them speedily and without fail," the report said.

The Committee also wanted the government to review FDI policy to make India an increasingly attractive and investor friendly destination for foreign investors.

The government, it said, should come out with new guidelines to revamp Special Economic Zones (SEZs) and Export Oriented Unit (EIU) schemes, to boost exports.

In order to contain imports, the Committee suggested that government should explore options like promoting austerity in oil consumption, maintaining a strategic storage pool of oil to offset crude price fluctuations in international market and discourage import of gold and silver.

Referring to the issue of high fiscal deficit and rising subsidy bill, the Committee said that better targeting of subsidies is needed to ensure the benefits are not enjoyed by the affluent sections of the society.

It has also suggested that government should come out with specific action plan to improve expenditure management and achieve 10 per cent mandatory reduction in non-plan expenditure.