So here is what the export policy looks like:

Policy Rule Access Client RO
Vserver Name Index Protocol Match Rule
------------ --------------- ------ -------- --------------------- ---------
vs0 default 1 any 0.0.0.0/0 any

So i would like my nginx server as below:

Receive GET/PUT request from a client.
Forward the request to the NFS client via the NFS mount point.
The NFS client which has mounted the file system would then use NFS to fetch the file.

So to summarize, nginx server just acts like a proxy here..

FYI: I did try doing a GET and PUT via the VFS and it worked... The config file looks something like below:

http {
include mime.types;
default_type application/octet-stream;
sendfile on;
keepalive_timeout 65;
dav_methods PUT DELETE MKCOL COPY MOVE;
create_full_put_path on;
client_max_body_size 10G;

server {
listen *:80 default accept_filter=httpready;
server_name vs0;
root /clus/vs0;
autoindex on;

location = /favicon.ico {
access_log off;
log_not_found off;
}

}
}