A family scrounges for diamonds on Juhu beach on Wednesday. (AFP)

Mumbai, June 29 (Reuters): Thousands of people have been flocking to a beach in India’s financial hub in a manic diamond rush, but police said today the stones were fake and warned them to stay away after a treasure hunter drowned.

Beggars, hawkers, street children and even housewives and tourists have been arriving at Juhu beach, scouring the sands for glittering stones for the past three days.

The treasure seekers are on all fours on the sand from early in the morning, witnesses and the police said, sifting through the gravel looking for precious stones.

Many even continue their search into the night, carrying on by torchlight.

“We heard people found diamonds on the beach,” said Dhruv, a 15-year-old boy who sells newspapers in the city’s local trains. “So I came here with my friends and we have found more than 50 diamonds which we managed to sell.”

The police, however, said the stones were fake and warned people not to venture onto the beach, particularly during high tide. But the warnings have apparently had little effect.

While local jewellers were reported as saying the stones were valueless, crowds on the beach said they had been sold for Rs 300 to Rs 1,500.