In the house, a row over stock cubes turned nasty with Jade and Shilpa telling each other to shut up, before Jade flew off the handle, screaming: "You're not some princess here... you're a liar and a fake, you're a fucking phoney."
Later, and out of Shilpa's hearing, Jade said "You need a day in the slums. Fucking go into your community", and Danielle added "That fucking brightened my day up, I'm telling you... I think she should fuck off home".
Then for the first time Shilpa linked Jade, Jo and Danielle's hostility with racism, although Cleo disagreed with her.
The polarisation in the house led to the housemates nominating Jade and Shilpa for eviction tomorrow night.
Meanwhile, the tally of complaints increased to 27,000 to Ofcom and more than 2,000 to Channel 4, and in India the racism issue was front page news and some fans of Shilpa burned effigies of the Big Brother producers.
Kamal Nath, the Indian trade minister, raised concern about Shilpa's treatment in a meeting with the chancellor Gordon Brown, who is visiting the country on government business.
Brown described the comments made about Shilpa as "offensive" and told Indian reporters: "I want Britain to be seen as a country of fairness and tolerance and anything that detracts from that I condemn."
Tony Blair, when quizzed on the incident at prime minister's questions, said he had not seen the show, but added: "We should oppose racism in all its forms."
As Channel 4 weathers the storm, holding the line that the clash is down to cultural and class differences, it is reaping the benefits of rekindled public interest in the show. Viewing figures have already leapt by almost a third between Monday and Tuesday and are likely to peak with tomorrow's phone vote to kick out either Shilpa or Jade.
In a new statement, the broadcaster said: "To date there has been no overt racial abuse or racist behaviour directed against Shilpa Shetty within the 'Big Brother' house. However, there has undoubtedly been a cultural and class clash between her and three of the British females in the house.
"Unambiguous racist behaviour and language is not tolerated under any circumstances in the 'Big Brother' house."
The show sponsor Carphone Warehouse also released a statement playing down reports it is reviewing its sponsorship: "We are against racism in any shape or form. As sponsor we have no involvement in the content of the programme, but we're in constant contact with Channel 4 who are giving us all the facts as we require them. We have full faith that Channel 4 will deal with these serious allegations in the appropriate manner."
Reports this morning claim that 'Big Brother' is set to introduce new housemates including former footballer Mark Bosnich and Australian paparazzo photographer Darryn Lyons.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
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