A gunman took an unknown number of people hostage inside a chocolate shop and cafe in Australia's largest city at the height of Monday morning rush hour. TV footage showed two people inside the cafe seen holding up a flag believed to contain an Islamic declaration of faith. Follow all the live updates here:

15:03 The gunman has planted two bombs in the cafe: reports

14:58 We will put as many personnel in this operation as needed because it is that important to us: Police

14:56 Police still cannot confirm the number of people held hostage in Sydney's Lindt cafe

14:56 We understand that none of the hostage has been injured: Police

14:55 We are doing all we can in these difficult circumstances, we will get through it: Police

14:54 Our priority is to free hostages safely: Police

14:52 We had a telephonic conversation with the gunman: Police

14:43 Infosys employee held hostage in Sydney hails from Piduguralla in Guntur district of Andhra Pradesh.

14:41 "We can confirm that one Infosys employee is among the hostages at the Lindt Cafe in Sydney. We are also in the process of confirming the whereabouts of all our other employees in the city. We are in constant touch with the local authorities and Indian Consulate in Sydney for updates on the situation on ground. The family of the employee has been informed and we are extending all possible support to them in this difficult time," said the statement from Infosys.

14:40 Infosys confirms one of its employees held hostage in Sydney's Lindt cafe.

14:07 Sydney Indian consulate helpline: Dr Vinod Bahade +6148145355013:32 The Indian software professional held hostage in Sydney cafe with several others is from Andhra Pradesh: sources

13:29 “One software engineer is among the hostages. He is an employee of Infosys Australia. Our consulate in Sydney and police authorities are in touch with family," India's High Commissioner in Canberra tells CNN-IBN.13:21 An Indian amongst the people held hostage at the Sydney cafe: Union Minister Venkaiah Naidu

13:14 We are in contact with the gunman, we aim to peacefully resolve the situation: Police

13:12  There are probably a number of mediums being used (by the gunman) at the moment. We are keeping a close watch on social media platforms like  Facebook and Twitter: Police

13:11 It is an important part of our negotiation that we don't talk about tactics with the gunman: Police

13:11 We still have people who are being held hostage in the cafe: Police

13:10 If you had plans to come into the city, then go about your plans as usual. There is an exclusion zone in Martin Place: Police to general public.

13:09 What we are seeing now is an evolving negotiation: Police

12:52 The gunman has kept forward two demands. He wants the authorities to bring an Islamic State flag to the cafe and get him connected to the Australian PM via phone call.

12:39 The gunman wants to speak to Australian PM Tony Abbott.

12:28 MEA said the Indian government is focussed on the issue of safety and security of Indian nationals in Sydney.

12:28  The Indian Consulate is in touch with local authorities and all the staffers in the consulate are safe, the spokesperson said.

12:27 "As a preventive measure in accordance with the local requirements, we have evacuated the staff from the Sydney Consulate building because it is located about 300-400 metres away from where this incident took place," Ministry spokesperson Syed Akbaruddin said.

12:26 The Indian Consulate in Sydney was on Monday evacuated in view of the hostage situation in the Sydney cafe, the External Affairs Ministry said.

12:16 Two women, one after another, sprinted from the cafe and into the arms of heavily armed police. Both were wearing aprons with the Lindt chocolate logo, indicating they were cafe employees.

12:00 The "Islamic flag" as seen from the cafe's window.

11:56 The Opera House in Sydney has cancelled tonight's performances in the light of the situation in the Sydney cafe.  "In light of the situation, we have decided to cancel tonight's performances at the Opera House. This is to minimise pressure on transport networks and to provide as much notice as possible to staff and patrons," a local media reported citing an Opera House statement.

11:38 Two more hostages have managed to escape from the Sydney cafe

11:37 Hadley claimed the gunman was talking about "other operatives being involved", and said he was instructed to call back. "They talked about a password they would give me...I have no idea what that means, what it's about," Hadley said. "I could hear the person in the background giving instructions to the young man I was talking to."

11:35 The gunman wanted the hostage to speak live on radio, a demand Hadley claimed to have refused. "I told the hostage it would not be in his best interest or my best interest to allow that to happen because I'm not a trained negotiator, I don't have any expertise in this, there are people who will talk to both the hostages and the person holding the hostages and they will be knowing what to do," said Hadley.

11:35 Hadley said he could hear the gunman talking in the background during the phone conversation, Sydney Morning Herald reported.

11:35 "The male hostage was remarkably calm when relaying information over the phone from the gunman," said Ray Hadley, a radio presenter of 2GB, a commercial radio station in Sydney..

11:34 A Sydney-based radio presenter Monday said he spoke to one of the hostages being held inside a cafe here and he could hear the gunman talking in the background.

11:20 The translation of the flag seen through window is, "There is no god but Allah; Muhammad is the Messenger of Allah."

11:19 The flag being held by hostages against the window of Lindt Chocolate Cafe is not an Islamic State flag, but is an Islamic flag that has been co-opted by jihadist groups.

11:18 None of the hostages have been harmed: Police

11:18 Australian Police said that negotiators were in contact with the gunman.

11:17 Ministry of External Affairs spokesperson Syed Akbaruddin tweeted, "In case of queries about Indian nationals following events in Sydney contact Dr Vinod Bahade Dy Consul General at phone +61 481 453550."

11:16 The Sydney Opera House cancels Monday night's performances.

11:16 In wake of the incident, major landmarks like the Sydney Opera House were evacuated immediately.

11:15 The two people have also been seen on live video footage bolting out of the door past heavily armed police and then disappearing around a corner.

11:15 Almost four hours after the cafe in downtown Sydney was taken hostage, three people were seen running out of a fire exit of the building. It is not yet clear whether they were hostages or whether they were escaping from another area of the building where the hostage situation has been ongoing since Monday morning.

11:13 A police spokeswoman said no injuries had been reported from the incident. Heavily armed officers were lined up outside the cafe, and a man with a backpack inside the cafe could be seen walking back and forth in front of the glass doors.

11:13 Prime Minister Tony Abott addressed the nation after the incident wherein he said, ""We don't know whether this is politically motivated, although obviously there are some indications that it could be. We have to appreciate that even in a society such as ours, there are people who would wish to do us harm."

11:12 Streets in the area were closed, offices evacuated and the public told to stay away.

11:12 TV footage showed two people inside the cafe seen holding up a flag believed to contain an Islamic declaration of faith.

11:11 A gunman took an unknown number of people hostage inside a chocolate shop and cafe in Australia's largest city  Sydney on Monday morning.