Official records show Clegg and his wife Miriam González Durántez hosted an event for Path To Success at Lancaster House, a mansion belonging to the government estate, in 2011.

Bhanu is listed as a board director of the children's charity, which was founded by Sudhir's wife, Anita.

Sudhir and his son Bhanu were arrested on Wednesday as part of the Serious Fraud Office's investigation into alleged bribery in Indonesia and China by Rolls-Royce, the world's second-largest engine maker.

As well as donating more than £500,000 to the party through family firms, the Choudhries have developed many links with Clegg, González Durántez, and other senior Liberal Democrats, and socialised with them on a number of occasions.

One senior Lib Dem has also received a large donation from Sudhir Choudhrie, who is known as "Bunny" among his friends. Justice minister Simon Hughes received a £60,000 donation in November after a request for the cash, according to the businessman's spokesman.

Choudhrie was reportedly considered for a peerage last year by the Lib Dems, but was passed over amid concerns about criticism of his family's care home business by the official watchdog.

How about a ban on using government property, presumably funded by the taxpayer, to host donors to your own bloody party? I mean it wouldn't bring the state into disrepute with this sort of thing any more than necessary