Erica Jane accuses Kathy Hilton of homophobic slurs, Kathy denies it

Erica Jane makes a great indictment against Kathy Hilton on the ‘RHOBH’ reunion finale … claiming she heard Katie make a homophobic slur, but Katie vehemently denies that happened.

Sources with direct knowledge tell TMZ … during the reunion finale, Erica accuses Katie of making a homophobic comment as the cast went to Aspen. We’re told Erica claims Katie used a slur against someone in the cast earlier this season, but production cameras were NOT rolling when the alleged incident happened.

Our sources say production looked into Erica’s statement after the Aspen trip, but found it was mostly a case of she said, she said — Erica’s word against Katie’s.

That being said, we’re told Erica’s claim was not edited out of the reunion finale, which airs Wednesday, and in the episode, Katie is adamant she never used the epithet and says Erica is a liar.

Katy has others backing her up … our sources say after Katy’s vehement denials, several other ‘RHOBH’ stars have come to her defense. I wonder what Sister Cathy told us, Kyle Richardssits quietly next to Katie while going back and forth with Erica … more evidence of their fractured relationship.