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The terrorist campaign by Bhindranwale and the All India Sikh Students Federation, headed by Amrik Singh, began on 24 April 1980 with the assassination of the head of the Nirankari sect. The killing of many Nirankaris, dissident Akalis and Congress workers followed this. In September 1981, Lala Jagat Narain, editor of a popular newspaper and a critic of Bhindranwale, was killed. Gaini Zail Singh who had in 1980 become the home minister at the Centre shielded Bhindranwale from government action. To protect himself, Bhindranwale moved in July 1982 to the sanctuary of Guru Nanak Niwas, a building within the Golden Temple complex from where he directed the campaign of terrorism in Punjab.
Till September 1983, terrorist killings were confined to Nirankaris, petty government officials and Sikhs who disagreed with Bhindranwale. A new dimension to terrorist activity was added when from September 1983 he started targeting Hindus on an increasing scale, and indiscriminate killing of Hindus began. He also organized the looting of local banks, jewellery shops and home guard armouries, the killing of Nirankaris and government officials and random bomb explosions. In April 1983, A.S. Atwal, a Sikh deputy inspector-general of police, was killed just as he was coming out of the Golden Temple after offering his prayers. Bhindranwale also gave a call for a separation from and an armed struggle against the Indian state, emphasizing the separateness and sovereignty of Sikhs.
Fearing arrest, in December 1983, Bhindranwale moved into the safe haven of the Akal Takht within the Golden Temple and made it his headquarters and armoury and a sanctuary for his terrorist followers, many of whom were criminals and smugglers. He smuggled on a large-scale light machine-guns and other sophisticated arms into the Temple, and set up workshops there for fabricating sten-guns, hand grenades and other arms. He erected pillboxes in and around the Akal Takht and other buildings, where he provided weapons training to new recruits and from where he sent out death squads and conducted his campaign of murders, bombings and loot. A large number of other gurudwaras were also used as sanctuaries and bases for terrorist activities.