Glasgow councillor Sohan Singh appeared on petition at the city's Sheriff Court 10 days ago, along with another man, Mahesh Sharda.
Mr Singh, 60, made no plea or declaration and was bailed.
No date has been set for Mr Singh's next court appearance.
Mr Sharda was similarly bailed after making no plea or declaration.
Mr Singh was only elected to Glasgow City Council in May 2012 and represents the North East ward. A well-known businessman before becoming the first Sikh elected to political office in Scotland, he owns a raft of hotels, including Artto in Glasgow city centre and the Lorne Hotel in the west end.
He had been suspended from the Labour group on the council in late 2012 after admitting to using a disabled parking space while on business for the local authority.
His current suspension from Scottish Labour is not related to his Glasgow Sheriff Court appearance on August 28.