Fergus Wilson – Britain’s wealthiest buy-to-let tycoon – claims he was wrongly arrested by officers and held in a cell in 2014.
A tenant at one of his houses alleged she was sexually assaulted by the multi-millionaire while he was carrying out work on her home.
She claimed Mr Wilson, 69, asked her to put on her work uniform and that he touched her sexually.
Mr Wilson says he was immediately arrested before officers interviewed the complainant and was placed in a cell for 11 hours before he was released without charges.
Following an investigation lasting more than four months no charges were brought due to a lack of evidence.
“I shouldn’t have been arrested”
Now Mr Wilson says he’ll sue the police for £1million compensation for wrongful arrest and imprisonment.
He told the BBC South East: “They have made a pig’s ear of my arrest. I shouldn’t have been arrested – what they should have done is interview the girl before they came to get me.
“You can’t go taking people off the streets based on an allegation which may or may not be true.”
Last month a court backed Michael Barrymore in a claim for damages against Essex Police for his wrongful arrest in 2007.
Barrymore was arrested on suspicion of rape and murder after the death of Stuart Lubbock, 31, who was found dead in the entertainer’s swimming pool in 2001.
Barrymore, who is seeking £2.4million compensation, was told he could receive damages after a ruling by the High Court in London.
Unemployed Hong Kong resident Simon Wong, 61, watches TV inside his 4-by-6-feet coffin unit, with a monthly rent of HK$1,750 (£182).
Mr Wilson continued: “What’s come out of all these cases is you must treat everyone the same. What was happening is the police were automatically believing the person who made the allegation and then it turns out it’s a load of nonsense.”
The controversial landlord has faced widespread condemnation after he banned Indians and Pakistanis from his properties complaining they made the houses smell of curry.
His ban came to light in a leaked email listing Mr Wilson’s instructions to a letting agent for potential tenants, including: “No coloured people because of the curry smell at the end of the tenancy.”
Mr Wilson also banned single mothers, battered wives, zero hour workers and families with children.
He has banned plumbers because he believes they rip him off when they carry out repairs to his properties.
Critics have called his policies discriminatory and racist and have launched legal action against him but Mr Wilson says banning certain people from renting his properties just makes economic sense.
The Equality and Human Rights Commission (EHRC) has applied for an injunction against Mr Wilson saying his lettings policies are unlawful which will be heard in November.
Kent Police confirmed they have received a claim for compensation and were looking into the matter.
In 2014, Wilson was found guilty of assaulting an estate agent in a dispute over a boiler.