Bangkok: The Land Department has intensified its efforts to address the issue of legal entities in which foreigners hold shares through nominees. The department has requested cooperation from the Department of Business Development to inspect these entities and enforce strict legal measures if any are found to be nominees. This includes forcing the sale of land and taking legal action. The Land Department has also called on provincial authorities to collaborate in resolving this issue and raising public awareness.
According to Thai News Agency, Mr. Pornpetch Penpas, Director-General of the Land Department, highlighted the ongoing concerns regarding Thais or legal entities holding land or real estate on behalf of foreigners. Notable cases include Chinese investments in the Eastern region for durian orchards and large factories in the EEC, as well as foreigners using Thai nominees to acquire land or condominiums in tourist areas and Bangkok. Mr. Pornpetch emphasized that this issue poses significant social, economic, and security challenges for Thailand.
The Land Department has reached out to the Department of Business Development, requesting them to monitor and share information about entities suspected of acting as nominees. This includes those that have altered their capital or shareholder structure, potentially becoming foreign entities under the Alien Business Act B.E. 2542. The aim is to ensure that land acquisitions comply with legal requirements and assess if these entities are acting as nominees for foreign interests.
Mr. Pornpetch stated that if investigations uncover instances of Thai individuals or entities acting as nominees, the Land Department will enforce punitive measures, including forcing the sale of land and pursuing legal action against offenders. This includes foreigners, nominee companies, and Thai representatives, under the Land Code and Criminal Code, which carry penalties of fines and imprisonment.
The Land Department has also issued a directive to provincial governors, emphasizing the importance of addressing this issue. Officials are urged to investigate cases, verify information, and educate the public to foster understanding and compliance with the law.