Carphone Warehouse announced today that it was suspending its sponsorship of Celebrity Big Brother over allegations that an Indian actress had been subjected to racist bullying.

The mobile phone and telecommunications firm has spent an estimated £3 million a year sponsoring the Channel 4 reality TV show since 2004, one of the highest-profile sponsorship deals in British television.

Its decision to sever its links came soon after Ofcom, the media regulator, announced an investigation into the racism row and said it was asking Channel 4 for its formal response into allegations of racist slurs against Shilpa Shetty, a Bollywood star.

More than 27,000 viewers have complained to Ofcom about the show, three times the previous record set by Jerry Springer - The Opera.

Chris Dunstone, the Carphone Warehouse chief executive said: "Our concern has rapidly mounted about the broadcast behaviour of individuals within the Big Brother house.

"We are totally against all forms of racism and bullying and indeed this behaviour is entirely at odds with the brand values of the Carphone Warehouse.

"As a result, we feel that as long as this continues, we are unable to associate our brand with the programme.

"We had already made it clear to Channel 4 that were this to continue, we would have to consider our position. Nothing we saw last night gave us any comfort. Accordingly, we have instructed Channel 4 to remove our sponsorship name and branding with immediate effect."

Earlier today, the Indian High Commission in London said that the pioneering reality show should be scrapped if the Ofcom investigation uncovered real evidence of racism.

"If an investigation into this programme proves that it contains racial abuse, the programme should be scrapped - thrown out. Any programme that is found to contain racial abuse should be scrapped," Kuldeep Bharbwaha, a diplomatic spokesman at the High Commission, told Times Online.

He added: "She (Shilpa Shetty) is an actress and a person of some standing in India. She came over here because she was invited, and we should acknowledge that and treat her as an equal.

"As Tony Blair himself said, racism is abhorrent and all people should be treated equally, regardless of colour or ethnicity. This is a country with a multitide of cultures."

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