Quoting from interrogation reports of one of the militants taken into custody, the newspaper said nine militants rented an apartment in the Colaba area of downtown Mumbai, near where the attacks were carried out.
The group often visited the two luxury hotels that were among the city landmarks attacked on Wednesday night, it added.
The militants, who were mainly Pakistanis, pretended to be Malaysians during their reconnaissance visit, the newspaper said.
At least 10 militants slipped into Mumbai this week after hijacking an Indian fishing trawler in international waters and killing the four crew, it said. They came ashore in rubber dinghies and the trawler was found abandoned off Mumbai.
In all, 16 militants took part in the attack, the newspaper said, but it did not give details on how the others may have entered the city.
At least 144 people have been killed and more than 280 wounded in the attacks. Indian commandos were still trying to flush out two or three militants holed up in the Taj Mahal hotel.
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