UPDATE: Interior Ministry orders Phuket land probe and action against over 200 foreign-owned companies

The Interior Ministry has ordered a probe into land ownership in Phuket, escalating an earlier provincial investigation into suspected nominee arrangements after evidence emerged of foreign-linked companies suspected of unlawful occupation of land plots.

Speaking on Thursday after a policy meeting with provincial officials at Phuket Provincial Hall, Deputy Interior Minister Polapee Suwunchwee said the ministry had instructed the Department of Lands to coordinate with Phuket authorities to take both civil and criminal action against more than 200 foreign-owned companies in the province.

The latest move follows an urgent meeting held at the Phuket Provincial Land Office on Monday, June 15, by the provincial committee responsible for examining suspected nominee land ownership. The meeting was chaired by Naphat Em-on, an Inspector-General from the Department of Provincial Administration who is currently serving as Acting Phuket Provincial Clerk and acting on behalf of the Phuket Governor.

Representatives from the Phuket Provincial Land Office and its Thalang branch told that meeting they had screened data on companies holding land in Phuket and found several firms that should be investigated further. According to officials, some companies were found to have foreign shareholders holding more than 49% of registered capital, or to have more foreign shareholders than Thai shareholders.

Authorities said such arrangements may indicate attempts to evade restrictions on foreign land ownership through the use of Thai nominees. They stressed, however, that the findings are grounds for investigation only and do not in themselves confirm any legal wrongdoing.

Mr Polapee also said areas lacking clear ownership documentation, including several beach locations inspected by officials on Wednesday, would be investigated by the Department of Lands.

The ministry is also working with the Royal Forest Department to survey Phuket and nearby tourism provinces for possible forest encroachment and illegally issued land titles. Findings will be reported to the ministry before additional measures are introduced.

Phuket Province has instructed Mueang Phuket District to work with village heads and local leaders to help verify information, monitor suspected nominee arrangements and support inspections in their areas.

Officials have said the intensified inspections are intended to protect the province’s economic interests and national security by preventing unlawful land ownership.

The Phuket action follows a nationwide directive issued by the Department of Lands on June 1 ordering provincial authorities to tighten scrutiny of suspected nominee ownership by both individuals and companies. Under those measures, land transactions involving individuals worth more than B5 million, or cash payments exceeding B2 million, are subject to detailed checks into the buyer’s income, occupation and source of funds where there are grounds for suspicion.

The Department of Lands has also expanded checks on companies with foreign shareholders or directors, especially where land purchases exceed B5 million or involve cash payments of more than B2 million. Officials are to examine whether Thai shareholders are genuine investors or are acting on behalf of foreign interests, and to investigate company funding sources. Companies buying land for more than their registered capital without financing arrangements may face additional scrutiny.

No further details were released on the companies under investigation, where the land is located, or whether formal legal action has begun in specific cases.