The revenue department is planning to approach the committee of disputes to recover around Rs 1,000 crore (Rs 10 billion) of tax arrears from the late Harshad Mehta.
It also proposes to move the special court for settlement of dues with the State Bank of India, another claimant in the case.
A senior revenue department official said a large part of the assets that were not being disposed by the custodian appointed by the special court looking into the stock scam, were now unsecured assets where the government had the first charge.
The government's arrears from the accused in the 1991 and 2001 stock scams were of the order of Rs 30,000 crore (Rs 300 billion).
According to Central Board of Direct Taxes Member Berjinder Singh, the government has estimated that around Rs 25,000-30,000 crore (Rs 250-300 billion) of the Rs 87,000 crore (Rs 870 billion) direct tax arrears were potentially recoverable.
"Some of it may be involved in litigation and we are seeking finalisation of proceedings as early as possible to recover the arrears," he said.
Singh said the legal clause dealing with provisional attachment of property would help in recovery of the arrears.
The field formation had, therefore, been reminded of the clause that had been there in the statute book since 1975. But, they had been advised to use it only in cases where it was obvious during the assessment that recovery would be a problem, he added.
The CBDT member also said the clause would govern assessments that had not been carried out so far. "There are, however, safeguards in the law itself that will check against any misuse," Singh said.
As per the law, provisional attachment can only be made after it has been approved by a senior official of the rank of commissioner or chief commissioner.
