Three Nepali settlers have been killed, and seven injured, by separatist rebels in the northeast Indian state of Meghalaya, said a BBC report.

The report quoting police authority states the attack, drive-by shooting, took place at the Tinali settlement near Phulbari town in the Western Garo Hills district.

They say the rebels, who belonged to the Achik National Volunteer Council (ANVC), often demand money from local businesses and settlers, and the killings could have been a reprisal for refusing to pay, adds the report.

The Achik National Volunteer Council has been fighting for a separate homeland for the Garo ethnic group, which lives on the border with Bangladesh.