Substitution of isovalent non-magnetic defects, such as Zn, in the CuO2 plane strongly modifies the magnetic properties of strongly electron correlated hole doped cuprate superconductors. The reason for enhanced uniform magnetic susceptibility, χ, in Zn substituted cuprates is debatable. Generally the defect induced magnetic behavior has been analyzed mainly in terms of two somewhat contrasting scenarios. The first one is due to independent localized moments appearing in the vicinity of Zn arising because of the strong electronic/magnetic correlations present in the host compound and the second one is due to transfer of quasiparticle (QP) spectral weight and creation of weakly localized low-energy electronic states associated with each Zn atom in place of an in-plane Cu. If the second scenario is correct, one should expect a direct correspondence between Zn induced suppression of the superconducting transition temperature, Tc, and the extent of the enhanced magnetic susceptibility at low temperature. In this case, the low-T enhancement of χ would be due to weakly localized QP states at low energy and these electronic states will be precluded from taking part in Cooper pairing. We explore this second possibility by analyzing the χ(T) data for La2−xSrxCu1−yZnyO4 with different hole contents, p (=x), and Zn concentrations (y) in this paper. The results of our analysis support this scenario.