Nehal Modi, who is the younger brother of fugitive Nirav Modi, was indicted on Sunday for fraudulently obtaining diamonds worth over $2.6 million from one of the world's biggest diamond companies in Manhattan, reported PTI.

According to Manhattan District Attorney Cy Vance, Nehal is charged in a New York Supreme Court indictment with Grand Larceny in the First Degree.

In a statement, Vance said, "While diamonds maybe forever, this flawed scheme was not, and now Modi will face the clarity of a New York Supreme Court indictment. My Office will not allow individuals who have the privilege of soliciting business in Manhattan's iconic diamond industry to defraud our businesses or consumers."

Also read: India seeks expeditious extradition of Vijay Mallya, Nirav Modi from UK

41-year-old Nehal made false representations to obtain over USD 2.6 million worth of diamonds from LLD Diamonds USA on favourable credit terms and consignment, and then liquidated the diamonds for his own ends between March 2015 and August 2015.

The statement said that Nehal, who is a former member of Noble Titan Holdings, was initially introduced to the president of LLD Diamonds through industry associates. He approached LLD in March2015, claiming that he was pursuing a relationship with Costco Wholesale Corporation and asked the New York-based diamond company to provide several diamonds, worth nearly USD 800,000, to present to Costco for a potential sale.

After getting the diamonds from LLD, he falsely informed the company that Costco had agreed to purchase them. Following this, LLD allowed him to purchase the diamonds on credit, with full payment required within 90 days. 

Nehal then pawned the diamonds at Modell Collateral Loans to secure a short-term loan, said the Manhattan District Attorney's office. He returned to LLD three additional times and took more than USD 1 million worth of diamonds for purported sales to Costco between April and May 2015.

Although he made a series of payments to LLD, he used the majority of the proceeds for personal use and other business expenses.