Chief State Solicitor Eileen Creedon has confirmed legal action has been taken over an empty Probation Service Project which has cost the State €2m.
Speaking at a tense Public Accounts Committee, Ms Creedon said she could not discuss the wider situation about the premises at Dublin's Wolfe Tone Street as court proceedings had been issued.
Dublin City Council has said new planning permission is required before any service operates there.
Responding to Sinn Féin TD Mary Lou McDonald, she confirmed that legal action in relation to the matter was taken yesterday.
Ms Creedon agreed to appear once again before the committee to answer questions on the matter after legal proceedings conclude.