Millionaire Fergus Wilson issued the directive in an email to lettings agents Evolution, who handle some of his hundreds of rental properties.
The email listed his requirements for potential tenants, including one which stated, "No coloured people because of the curry smell at the end of the tenancy," The Sun reported.
Wilson, 70, was unrepentant about his ban and was quoted as saying, "To be honest, we're getting overloaded with coloured people. It is a problem with certain types of coloured people -- those who consume curry -- it sticks to the carpet."
When asked if he had told Evolution not to take "coloured" people, Wilson said, "Certainly at one point we have".
Anti-racism group Hope Not Hate said Wilson's comments were outrageous.
"You simply cannot treat people like this and deny them a place to live due to their skin colour," the group said.
"If people such as this man continue to choose tenants on the basis of ethnicity he should face the full force of the law," it said.
Kent Police said, "We will be working to establish if any offences have taken place."
Roy Fever, manager at Evolution Properties, was quoted as saying , "We don't condone this at all. We would never implement a policy like that. We put through anyone to the landlord and it is up to the landlord who they take on."
In January, it was reported that Wilson had banned single mothers, battered wives, plumbers and low income earners from renting his homes.
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