Lib Dems embroiled in controversy over 'tainted' Indian businessman's donations

Following the listing of Indian businessman Sudhir Choudhrie as an international arms dealer on the Indian fraud squad's blacklist of "undesirables", the Liberal Democrats are caught up in a fresh donor row.

Choudhrie, who is considered as the party's biggest benefactors, donated more than 500,000 euros to the Lib Dems since 2010.

India's Central Bureau of Investigation had named Choudhrie as one of 23 "unscrupulous persons" in 2012.

According to the Guardian, the Indian CBI also investigated claims that Choudhrie and his companies received a number of suspected remittances to the tune of millions of dollars" from arms firm Israel Aircraft Industries over a deal to supply seven Barak missile systems and 200 missiles to the Indian navy.

Meanwhile, Lib Dem in their defence claimed that the party was unaware that Choudhrie was on the CBI list of people suspected to be resorting to corrupt or irregular practices in their dealings with official agencies.