Shadow home secretary David Davis has demanded an apology after a local Labour politician accused him of calling for an Asian-only housing block to be "burnt down".
Michael Keith, a former member of the Government's Commission on Integration and Cohesion who is standing in a council by-election in Shadwell, east London, made the claim during a BBC radio debate with other candidates.
The Sonali Gardens council development was embroiled in controversy three years ago after it was effectively reserved for Muslim elders.
But Mr Keith said during the debate on Monday: "Can you tell my why it was that David Davis stood outside (the Sonali Gardens centre) and demanded that it be burnt down?
"The Conservative government spokesperson demanded that Sonali Gardens be torn down. He was on the front page of national newspapers for saying that."
Shadow minister for cohesion Sayeeda Warsi has written to Communities Secretary Hazel Blears urging her to condemn Mr Keith's comments.
Mr Davis insisted the allegation was "totally false", and said he had merely warned that the Asian-only block risked creating resentment between communities.
"Michael Keith has twisted beyond recognition a reasonable statement I made three years ago," he said.
"It is totally false and utterly misleading to say I called for Sonali Gardens day centre to be burnt down. It is inflammatory to the community. It is insulting to me. The very worst kind of politics.
"I expect a full apology."
