Still simmering from yesterday's confrontation over the shopping list, the pair were sat at opposite ends of the garden while the group enjoyed the day's sunny weather.
However, the clash was soon brought up and as the discussion became increasingly heated, Sree told Marcus to watch his language.
"Make me, make me. You abused me," replied Marcus. "Say it when we're outside, see if you're brave."
Alarmed, Sree commented that he would call the police if Marcus came anywhere near him in the outside world.
At this point, Big Brother called Marcus to the Diary Room and as he walked back into the house, Sree suddenly jumped up from his seat and started screaming after him. "Go to prison and eat dog food!" he cried.
As Freddie and Lisa reassured the Indian student that Marcus had now left the room and that there was little point in ranting at him, Marcus was being grilled by Big Brother.
The window fitter was informed that he needed to calm down and that some of his actions could be deemed "inappropriate". Marcus argued that Sree is a "numpty" and was constantly telling everybody else in the house to shut up.
Big Brother then began to recount the argument word for word, prompting Marcus to tell the house boss to shut up.
Marcus was soon dismissed but was called back into the Diary Room later.
Upon careful review of the day's events, Big Brother stated that Marcus's threatening language, in which he warned Sree about what could happen in the outside world, would not be tolerated and so he was given his first formal warning.
Big Brother then clarified that his punishment was not for any racial reasons, but purely for his aggressive and threatening behaviour.