Thai authorities carried out a large-scale operation on 10 July against structures using nominees to allow foreigners to illegally hold land and businesses on the islands of Samui and Phangan.
Justice Minister Pol. Lt. Gen. Ruthapol Neowrat, accompanied by the director of the Department of Special Investigation (DSI), Pol. Col. Yutthana Phraedam, oversaw the raids carried out at five sites in the districts of Koh Samui and Koh Phangan, Surat Thani province.
The operations target networks suspected of using Thai nominee shareholders to circumvent the 1999 Foreign Business Act. In total, 34 companies are under investigation.
The first site involves a Chinese developer building a luxury villa project on more than 14,000 m² in Bo Phut. The group is said to control 97 rai of land, valued at an estimated 1.57 billion baht, with assets exceeding 1.69 billion baht.
The second target is a Thai law firm suspected of acting as a shell for more than 150 companies. Its directors are accused of enabling Chinese nationals to hold indirectly real estate worth over 795 million baht.
Three further targets, involving Israeli nationals, were also raided. They concern hotel establishments and wellness centres on Koh Phangan and Koh Samui, some operating without the required licences.
“This action targets only those using opaque legal structures to circumvent the law. It does not concern foreign investors who comply with the regulations,” said the Minister of Justice.
& Dailynews