Lottie, 19, told Lubna, 33, to “shut up Gandhi,” in a WhatsApp group chat according to reports.
While it was previously reported by sources to The Sun that Lottie had been “let off” for her use of language, a spokesperson for The Apprentice production team Boundless told RadioTimes.com: “Appropriate action is being taken and that is a matter between the production company and individual concerned.”
Lottie’s behaviour was also slammed by the BBC as “wholly unacceptable”.
“While this happened on a private messenger service once filming had concluded, the BBC nevertheless still expects the candidates to behave appropriately,” said a BBC spokesperson.
“The production company have looked into the issue and reported back, Lottie has been informed that her comments were wholly unacceptable and is in no doubt about our view on this.”
Following reports of the spat, Lottie has since spoken out on her use of language.
“When I said the story was untrue, I was referring to the allegations that I would ever be racist,” she told The Sun.
“My use of the word Gandhi was misinterpreted, it was as candidates in the group chat had been quoting Gandhi previously.
“The comments were taken out of context, and I again ask the public not to make judgement without knowing the full context.
“At the moment, I would like my focus to be on the show, and I’m not interested in negative media attention.”
The Apprentice is on BBC One, Wednesdays at 9pm