"Modi was given a National Insurance number in recent months by the Department for Work & Pensions and has been able to operate online bank accounts in the United Kingdom while wanted by Indian authorities", the publication reports, citing a well-placed source in the government.
A spokesman for India's foreign ministry said the government knew that Modi was in London. On February 26, the Enforcement Directorate attached properties of Nirav Modi and his associate companies to the tune of Rs 147 crore in connection with its ongoing probe into the case.
The ED and the CBI are investigating Modi, his uncle Mehul Choksi and others for alleged money laundering and corruption to perpetrate the alleged scam in the Brady House branch of the PNB in Mumbai that was unearthed previous year.
The Congress tweeted on Saturday after the video of Modi was released, asking why the government was unable to "track down Nirav Modi" when journalists had managed to do so.More news: Titans reportedly out of race for WR Antonio Brown
The Ministry of External Affairs (MEA) also acknowledged that India is aware of Modi's presence in London and is taking all necessary steps for his extradition.
India made a request to extradite the 48-year-old from Britain last August but the matter remains in the hands of the home secretary and the home office has so far refused to confirm or deny if it has received any such request. He alleged that Modi had snatched people's money from ordinary people and gifted them to Nirav Modi.
According to The Telegraph, Modi is living in a "three-bedroom flat occupying half of a floor of the landmark Centre Point tower block, with views across London".
Despite his bank accounts bring frozen by Indian authorities, and an Interpol red notice being issued for his arrest, Modi is now involved in a new diamond business based in the capital. This firm was incorporated in May previous year and is linked to the flat.More news: Indian-origin woman dentist killed in Australia body found in suitcase
In a video posted by the Telegraph newspaper, Nirav Modi can be seen sporting a handle-bar moustache and wearing an Ostrich Hide jacket, estimated to cost 10,000 pounds.
A source told the Telegraph that he had been given a National Insurance number, meaning he can legally work here, and has used British bank accounts.
The diamond tycoon is seen walking down the streets of London, repeatedly saying "sorry, no comment" to questions by a Telegraph reporter on his extradition status, how long he intends to stay in London and about his business partners.More news: Former Trump Campaign Chairman Paul Manafort Sentenced to 47 Months