Prosecutors in Geneva obtained a criminal order against Ajay Hinduja in December 2019 in relation to an account at Hinduja Bank, a private bank.

Ajay Hinduja allegedly falsely declared himself the beneficial owner of the account, which was opened in 2008 and was said to be controlled by a woman known to the family.

He denies any wrongdoing and is due to challenge the criminal order in a trial at the Palais de Justice.

A spokesman for the prosecutor said: “A criminal order (ordonnance pénale in French) has been issued but an opposition has been lodged by the defendant so the proceedings are ongoing.”

However, the controversy appears to have compounded a family dispute over ownership of Hinduja Bank, fracturing one of Britain’s wealthiest families and a worldwide empire encompassing banking, car making, real estate, energy, outsourcing and philanthropy.

Last year two oldest of the four Hinduja brothers, SP and GP, were named Britain’s second-richest men with a fortune of £16bn each.

Each of the brothers has an interconnected home at Carlton House Terrace, overlooking St James’s Park.

Despite their previous closeness, Vinoo Hinduja, daughter of 84-year-old SP, is now battling his three younger brothers, including Ajay’s father PP, through the courts over ownership of Hinduja Bank.

Acting on behalf of her father, who the High Court has found lacks capacity, Vinoo is asserting full control of the institution.

Her uncles have claimed Hinduja Bank is jointly owned by all four brothers, following a declaration made in 2014. They are making their case in the English and Swiss courts, as well as in private hearings in Jersey.

The prosecution in Geneva threatens to drag IndusInd, a Mumbai-listed Indian bank with a stock market valuation of £7.8bn, into the dispute.

It is controlled by the family via a Mauritian holding company, IndusInd International Holdings. Ajay Hinduja is a director of IndusInd International Holdings, which is partly owned by Hinduja Bank.

At the company’s annual general meeting in November, the board reappointed him as a director in the face of demands from Hinduja Bank for an investigation of the Swiss criminal order against him.

Following the meeting, Hinduja Bank wrote to the Mauritius Financial Services Commission and Registrar of Companies alleging a “serious failure of governance” by IndusInd International Holdings.

It claimed that Ajay Hinduja could be disqualified as a director under local law and the company’s own constitution. The action has prompted a furious response from the other side of the family.

Via Swiss lawyers they warned Hinduja Bank that any suggestion that Ajay Hinduja has a criminal conviction is an “infringement to the honour and is slanderous”.

Ajay Hinduja’s lawyers declined to comment on the background to the prosecution and said he is innocent until proven guilty.

Swiss authorities said the hearing to challenge the criminal order has not been scheduled.

Ajay Hinduja will remain free of any Swiss criminal record if he is successful.

A spokesman for the Mauritius Financial Services Commission said: “Investigation is still ongoing and as per our policy, the commission cannot disclose any information to any third party.”

A spokesman for the Registrar of Companies confirmed receipt of a letter from Hinduja Bank and said: “The matter is under process.”