People look at newspapers displayed at a news stand in Lahore, Pakistan AP India had twice told the U.S. that Osama Bin Laden was not in a cave somewhere but hiding in an urban area close to Islamabad, according to a report by The Times of India. The information is also likely to fuel speculation that Pakistan knew of the al-Qaeda leader's whereabouts.

The first lead came in mid-2007, soon after bin Laden's ally Ayman al-Zawahiri attended a Taliban meeting in Peshawar, that was also attended by leaders of Haqqani network, an insurgent group based in North Waziristan, and at least two ISI officials. Zawahiri is said to have rushed to Islamabad after the meeting and Indian operatives began receiving information that bin Laden's allies were working in the region.

The next lead came in 2008, when Indian officials were tipped off that bin Laden was ill and hiding out in a cantonment in the area. An official told The Times of India:

"This time we specifically mentioned about his presence in a cantonment area. It was because we had definite information that his movement was restricted owing to his illness and that it would have been impossible for him to go to an ordinary hospital. We told the Americans that only in a cantonment area could he be looked after by his ISI or other Pakistani benefactors."

The official said he believes Pakistani officials may finally have turn bin Laden in because he had become too much of a "liability".

It is unclear why American authorities didn't consider the information and raises more questions about Pakistan's alleged involvement in safe housing bin Laden. The news comes amidst reports in Pakistan that bin Laden was killed by his bodyguard.