Property landlord Nicholas Hoogstraten was given more than £1 million of public money to defend himself against charges of killing a business rival.

The tycoon, who once boasted he was worth £500 million, was granted £1.12 million in legal aid for representation in his murder trial after the death of Mohammed Raja.

Mr Hoogstraten, who owns a £40 million mansion at Framfield, near Uckfield, was convicted of manslaughter but cleared on appeal.

Mr Raja's relatives, who have spent £1 million pursuing a civil claim against Mr Hoogstraten, were alarmed by news of the legal aid grant.

Mr Raja's son Amjad said: "We knew he had applied for and been given some legal aid but we didn't know until now just how much.

"It's shocking he can claim on one hand to be worth £500 million when he's boasting to people, and yet take public money to fund his legal bills. What's the truth?

"Legal aid is for people who can't afford to pay."

Giovanni di Stefano, who represented Mr Hoogstraten at his trial, said: "My client was stopped from working for 18 months and his name blackened. He's an innocent man. It's irrelevant what he's worth."

Mr Hoogstraten was granted legal aid at his original Old Bailey trial in 2002, with the Legal Services Commission (LSC) footing the bill.

An LSC spokesman said: "The figures are correct but it would be disingenuous to suggest we were granting him this money.

"The decision to grant legal aid was taken by the court officials, who would also assess the bill at the end of a case and perhaps make any recovery orders. Our involvement is slight."

A Department of Constitutional Affairs spokeswoman said Mr Hoogstraten was granted £120,000 in legal aid for his brief retrial.

He had funded his own defence for the original trial and his appeal but was entitled to apply for his costs back.

The judiciary has now agreed to grant his request and give him the £1.17 million he spent defending the murder charge.

The spokeswoman said: "The judges can turn down a request if they think the person in some way brought a charge upon themselves, while still being not guilty.

"But there is a principle that if you're found not guilty, the State should pay your defence costs back.

"The money is not strictly legal aid. It comes out of central court funds, run by the judges."

At the height of his property power, Mr Hoogstraten owned more than 400 homes in Brighton and Hove, plus more in London.

But his fortunes dipped after he was arrested following Mr Raja's death in Sutton in July 1999.

The Raja family won High Court rulings which resulted in Mr Hoogstraten being fined £1 million for non-disclosure of assets and having assets frozen and seized.

They were pursuing a £5 million claim their father had been making against Mr Hoogstraten over business deals before his death.

When Mr Hoogstraten was released from Belmarsh prison last December, he estimated his wealth had dwindled to £95 million. That included £30 million seized by sequestrators and the rest frozen by the High Court.

The Appeal Court overturned the rulings last July, opening the way for him to regain access to his money and assets.

Mr Hoogstraten is due back in court at the end of this month to discuss court costs.

David Croke and Robert Knapp, who it was alleged Mr Hoogstraten had hired, were both convicted of murdering Mr Raja and refused leave to appeal.

Both are serving life sentences.