Drug war erupts in Rio de Janeiro: Fierce gun battle rages between Brazilian military police and brutal Red Command cartel that rules slums with an iron fist

Gun battles and fires have been raging in the streets of Rio de Janeiro today as police launched a crackdown on a violent drug cartel which terrorises the favelas of the Brazilian city.

Police launched raids on the Red Command (Comando Vermelho), a huge organised crime faction which authorities say uses the poor Complexo do Alemão area in the north of the city as a 'bunker'.

Dozens have been killed in such raids over recent years, with innocent victims reported to have been gunned down by stray bullets in their own homes as police and gang members exchange fire.

At least 350 police officers are said to have been involved in the early morning operation today, including elite troops from the military police equipped with helicopters, armoured vehicles and heavy weapons.

As the sun rose this morning, huge plumes of black smoke could seen rising into the sky above the city, with locals describing their terror as the the streets resembled a warzone. 

Dramatic footage shared by locals shows how makeshift barricades were set on fire as gangsters retreated from the police, with flames erupting in dangerous proximity to people's homes.

As clouds of smoke fill the sky in one dramatic video, what appear to be tracer bullets are shot over a huge distance as marksmen prepare to take their shots into the overcrowded housing complexes below.

Police also came across a luxury villa which they believe was used by cartel members as a hideout. 

The abandoned bolthole in the impoverished neighbourhood boasted a swimming pool and 'party room', with bottles of alcohol left as its inhabitants fled, CNN Brazil reports.

Despite the huge scope of the operation, no arrests are believed to have been made so far, with police saying their work is still ongoing. 

'Working in communities is part of the actions to combat crime and is fundamental work, since the criminal organization uses the Complexo do Alemão as a bunker and starting point for attacks on other territories, in addition to promoting restrictions on freedom [on] residents and use the local population as a shield', the Civil Police said in a statement. 

Police said their aim in the operation was to execute warrants against criminals from other states, who they believe are increasingly operating in Rio and using it as a base. 

They added that they are seeking to repress criminal movement in the region and stop gangs from engaging in territorial warfare, which has been on the rise.

Burning piles of debris could be seen blocking Rua Canitar, one of the main streets in Alemão.

Specialist police officers posed with seized machine guns and drug hauls that they found, with a large cannabis farm also discovered.

The police operation meant that a school in the area had to be shut, according to local media.

Born out of Rio's favela slums during the political dictatorship of the 1970s, Comando Vermelho (CV), is the oldest and one of the most feared criminal gangs in Brazil.

Experts have said that CV presents a powerful challenge to the State’s control of parts of Rio territory. 

A report earlier this month found that organised crime has shot up in Rio in recent years, with police claiming that around 1,700 locations in Rio under the control of criminal organizations.

'It became evident that Comando Vermelho, the largest criminal organization in Rio de Janeiro, is expanding its operations and seeking to maximize its territorial domains,' the report warned.