Monday, September 14, 2009

Proxy land holdings come under threat

       Thais holding land on behalf of foreigners in breach of legal limits may lose title to the land, Phuket governor Wichai Praisa-ngob says.
       Ownership of some parcels of land,thought to be in the hands of nominees of foreign investors, was expected to be revoked, Mr Wichai said yesterday as the province moves to enforce foreign ownership curbs.
       Inquiries by the province had discovered at least "four to five landlords might need to have their title deeds cancelled", he said.
       They were acting as nominees of foreigners trying to get around curbs on foreign land ownership.
       Government help was needed to tackle the problem, he said.
       The Department of Special Investigation (DSI) has asked land officials on the island to investigate 16 plots which they suspect are controlled by foreign businessmen through Thai proxies.
       Most of the land, covering thousands of rai, is in tambon Rawai in Muang district.
       The plots are owned by five property developers.
       "We need to keep checking, but we can't root out the whole thing ourselves,"Mr Wichai said.
       The Phuket land office has issued up to 130,000 land title deeds and is now examining 1,000 applications more.
       Tambon Choeng Talay in Thalang district is also popular with development companies part-owned by foreigners.
       Chief of Choeng Talay tambon administration organisation Manot Pancharat said he supported the province's attempt to get things right.
       Land purchases had boomed in Phuket since last year after foreign investors became more interested in housing projects.
       Among them are homestays, a type of lodging that provides tourists with an experience similar to that of Thai families.
       Democrat MP for Phuket Chalermlak Kebsap said foreign businesses could exploit legal loopholes for their own interest, including tax avoidance.
       However, he warned against too much scrutiny, saying it could affect legitimate development in Phuket.
       Pol Lt Col Prawut Wongsinil, of the DSI, said a similar problem was occurring in Surat Thani province, where consultancies were giving foreigners advice on how to buy land and get around legal curbs.
       Foreigners are suspected of colluding with Thai partners in land development projects which break foreign ownership limits, said the DSI, which is expanding its investigation to Samui island and other tourist provinces.

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