The government is considering seeking compensation from architect Daniel Heung Cheuk-kei, who resigned from a government advisory body after an illegal land-use scandal.
The Lands Department is seeking legal advice on whether to demand lost revenue from Mr Heung resulting from the conversion of a government warehouse in Sha Tin, which he rented since the early 1980s, into a luxury residence.
The latest twist came as a top Beijing adviser said Mr Heung, a cousin of Chief Executive Donald Tsang Yam-kuen, had done something improper and should be condemned by the public.
Mr Heung, who resigned on Tuesday as chairman of the Committee on the Promotion of Civic Education following the scandal, has already vacated the two-storey warehouse that was his home between 1983 and 1999.
Labourers yesterday completed work to restore the premises to a warehouse, and the scenic hillside site will be returned to the government today.
A department spokeswoman said government lawyers were considering whether it was worth claiming lost revenue from Mr Heung.