A wealthy couple who run a perfume business just outside New York have been indicted on federal slavery charges after two emaciated women described years of abuse in their home.

The case came to light ten days ago when an Indonesian woman identified in court documents only as "Samirah" was seen wandering the streets of Syosset, Long Island, at six o'clock in the morning.

Wearing only a towel, trousers and carrying her passport, she was mistaken as a homeless person by an employee of the local Dunkin Donuts who heard her saying the word "Home" again and again.

But when she was interviewed by police, Samirah said that she had escaped the house of Varsha Mahender Sabhnani, 35, and her husband, Mahender Murlidhar Sabhnani, 51, on her nightly errand to empty the rubbish. She told investigators that she had not been directly paid since arriving in America in 2002 was routinely cut behind her ears and made to strip naked in their house in Muttontown, New York.

US Attorney Demitri Jones said the story that emerged when police officers then raided the house and discovered Samirah's co-worker, named as "Nona", was “truly a case of modern-day slavery". Under America's anti-slavery legislation, Mr and Mrs Sabhani face a maximum of 20 years in prison.

Yesterday, prosecutors charged Mr and Mrs Sabhnani, US citizens born in India, with two counts of forced labor and two counts of harboring illegal residents for their treatment of the two women, whose only payment, it is alleged, was a $100 monthly donation to Samirah's daughter in Indonesia.

The indictment alleged that the women were beaten, had boiling water thrown on them and were forced to climb up the stairs as many as 150 times in a row and take 30 showers in three hours as punishments for doing things wrong around the house. They were forced to hide in the basement when guests came to the house, it said.

One of the women said she was forced to eat 25 hot chili peppers at a time and Samirah told police that she was cut behind her ears with a pocket knife. Both were made to sleep on mats in the kitchen and say they were so hungry they stole food and hid it from Mr and Mrs Sabhnani.

Lawyers for the couple said they deny the allegations. Charles Ross, who represents Varsha Sabhnani, demonised as "Cruella" by the New York press, said the couple travelled constantly and that the two women were free to do as they pleased in their absence.

According to court papers, Samirah and Nona arrived legally in the United States on B1 visas in January 2002 which expired just three months later. The women claim that the Sabhnanis then confiscated their passports and refused to let them leave their home.

A spokesman for America's Immigration and Customs Enforcement service said the women were being cared for a Catholic charity. A spokesman for the US Attorney’s office for the Eastern District of New York said the Sabhani's were expected to appear at a bail hearing later today. Bail has been set at $3.5 million and friends and relatives have suggested the couple are willing to post the amount.

Times Recommends

• Times Charity Appeal: SolarAid
• Is it Black Monday all over again for Dubai?
• Behind the scenes at the biggest deal