The Duke of York may be called to give evidence in court over claims that a Kazakh billionaire paid £15 million for his Ascot home in a money-laundering scam.
The Duke's decision to sell Sunninghill Park to Timur Kulibayev, the powerful son-in-law of the president of Kazakhstan, for substantially more than the £12 million asking price in 2007 has long attracted scrutiny.
It had been suggested that the house was bought as a "favour" to the Duke, who has an unpaid role as Britain's trade ambassador and has visited the mineral-rich former Soviet state on several occasions.
A leading Kazakh banker now claims that Mr Kulibayev bought the 12-bedroom property using money he received from the sale of one of the country's major energy companies to the Chinese.
Mr Kulibayev has denied all allegations of corruption relating to that deal.
Mukhtar Ablyazov, a pro-democracy campaigner and former boss of Kazakhstan's largest bank, has made the allegations in documents to be submitted to the High Court in London, as part of an increasingly bitter legal battle.
He is being sued for embezzlement and money laundering by BTA, the bank he used to own but which is now controlled by the Kazakh government.
Mr Ablyazov insists that the charges against him are politically motivated. He arrived in Britain in 2009 and has claimed political asylum, alleging that he was jailed and tortured after founding a reformist party hostile to President Nursultan Nazarbayev, who has ruled Kazakhstan since the fall of the Soviet Union.
The banker said he planned to call the Duke as a witness because of his knowledge of the terms of the Sunninghill Park deal.
While there is no allegation that the Duke was aware of any wrongdoing, the claims will raise further questions about his handling of the sale of the Berkshire property, which was a wedding gift from the Queen.
The Duke and Duchess of York continued to live in the house even after their 1996 divorce, before it was put for sale in 2002.
pauThe property had been on the market five years with an asking price of £12 million without attracting a buyer, until the £15 million offer. Ownership was transferred to a company registered in the British Virgin Islands, and Mr Kulibayev did not confirm he was the new owner until earlier this year.
It is understood that he is keen to now keen to sell the 660 acre estate, which has fallen into a state of disrepair. He has never lived at the property.
Mr Kulibayev could not be contacted for comment, but has always strenuously denied allegations of corruption and financial impropriety.
Mr Ablyazov last night confirmed that his money-laundering allegations would be submitted to the High Court.
His spokesman said: "He is very happy that the case will be heard in Britain, where he can be assured that the judge will consider the facts and not the politics."
Buckingham Palace said that the Duke had no knowledge of the legal dispute between the two Kazakhs.
A spokesman said: "There is no connection between HRH and these allegations and, because of this, there is no prospect of him being called as a witness."
While the royals lived at the property it earned the nickname Southyork, after the Southfork home of the wealthy Ewing family in US soap opera Dallas.
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