KRABI, THAILAND – Authorities raided a luxurious pool villa in Krabi on June 2nd on suspicion of Thai nominees being used for foreign land ownership. The search uncovered indications of violations against land and hotel laws, prompting investigators to consider legal action and a broad review of other businesses.
Raid on 2.5 Rai Property
The search targeted a villa situated on a 2.5 rai plot of land in Moo 7, Nong Thale Subdistrict, Mueang Krabi. The operation was jointly led by Governor Angkoon Silathevakul and Police Major General Sukkasem Nakhonwilai, accompanied by police, provincial administration, and other officials.
This measure was part of a task force investigation into nominee arrangements that foreign investors might be using to circumvent ownership restrictions. Investigators are pursuing leads suggesting such schemes are in play.
Company Documents Show Foreign Involvement
During a review of ownership documents, officials found that the property belongs to a private company whose directors and controlling parties include two Spanish and one Thai national. The company’s owners were not present at the time of the raid.
Authorities are assessing the company structure as a potential indicator that Thai shareholders might be acting as nominees for foreign individuals, which could classify the company as a foreign entity under Thai land law.
Scrutiny for Land and Immigration Law Violations
Investigations are focusing on potential breaches of Thailand’s land law, which prohibits foreigners from owning land. The Krabi Land Office has been instructed to file a complaint with the Ao Nang police station. Authorities aim to identify and summon the individuals involved.
Additionally, investigators are examining whether the villa complied with reporting obligations for foreign guests under Section 38 of the 1979 Immigration Act. A detailed review will determine if further legal steps are necessary.
Villa Operated as Daily Rental Without Hotel License
Officials discovered the villa was being operated as a daily rental accommodation for foreign tourists without the required license under the 2004 Hotel Act. This subjects the operators to potential violations of hotel legislation.
Reports indicate the accommodation demanded a minimum three-night stay and charged 60,000 baht, having been operated in this manner for approximately three years. The review will aim to confirm if its operations were indeed illegal.
Six Other Businesses and Large-Scale Review
Governor Angkoon stated that six other businesses have already been investigated for similar suspicions, including accommodation facilities, hotels, restaurants, a zoo, and a cannabis establishment. Each is undergoing separate legal review processes.
Media reports suggest this action is part of a comprehensive crackdown. According to the Department of Business Development, 401 companies with foreign participation in Krabi are currently on the authorities’ review list.
Legal Steps and Outlook
Authorities are initiating legal proceedings against those responsible for the villa, intending to summon the owners to be informed of the allegations. The police will decide whether to press charges.
The planned review of the 401 businesses with foreign participation in Krabi aims to uncover and penalize further violations of land law and other regulations.