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Photos inside the building showed bundles of burnt currency notes and destroyed laptops and phones at the flat.
Police also opened fire in retaliation.
Police claimed that they had evacuated some people from the building before and during the standoff between the law enforcers and the alleged militants.
Police have arrested Momtaz Parveen, owner of the building, and her son Mazharul Islam Jewel for not providing police with information about their tenants, said Deputy Commissioner (Mirpur division) Masud Ahmed.
Police said the body was “abnormally swollen” but they did not see any injury or torture marks anywhere on it.
Police sources said about 400-500 shots were fired by law enforcers.
Police suspect that the top businessman died some three to four days ago.
Police then asked him to “spell” IS. He then elaborated it, saying: “Islamic State.”
Police then asked him to spell “IS”.
Police then decided to launch the operation around 5:50am.
Police took him in their custody and he is now taking treatment at Dhaka Medical College Hospital.
Police took the bodies to Dhaka Medical College morgue around 5:00pm.
Popular actor Sakib Khan is in Kolkata to promote his new film “Shikari”. The Bangladesh-India joint production which was released on the occasion of Eid-ul-fitr in Bangladesh, is to release in Kolkata on August 12.
Prime Minister Sheikh Hasina yesterday asked her party lawmakers to form active anti-militancy committees in their respective constituencies to fight extremism and militancy.
Prime Minister's ICT Affairs Adviser Sajeeb Wazed Joy and International Telecommunication Union's Secretary General Houlin Zhao will be present on the occasion.
Prime Minister's ICT Affairs Adviser Sajeeb Wazed Joy will open the event. Ministers, senior officials and experts will also attend the programme as discussants, the organisers said.
Private sector credit growth has been set at 16.5 percent and public sector credit growth at 15.9 percent.
Public Administration Minister Syed Ashraful Islam, State Minister for Public Administration Ismat Ara Sadique, Dhaka Divisional Commissioner Helal Uddin Ahmed, Chittagong DC Mohammad Mesbahuddin, Rajbari DC Begum Zeenat Ara and Sunamganj DC Sheikh Rafiqul Islam also spoke on the occasion.