PHUKET — Two Australian men filed a complaint on Tuesday at Kamala Police Station in Phuket against the company owning The Peaks Residences project for fraud. They had paid over 5 million baht for a condominium unit but did not receive the room as per the contract. They won a civil court case but have not received any compensation.
On September 4, the Central Investigation Bureau (CIB) revealed that officers received a complaint from Australian nationals against Kata Beach Company, the owner of The Peaks Residences project, at Kamala Police Station in Phuket Province. The Australians had won a civil case against the company for fraud but had not received any compensation.
The CIB stated, “If anyone has been affected and is a victim of this project, please come forward to report it. This will help expand the case for multiple victims, ensuring fair treatment for those who legally purchased real estate in Phuket and Thailand, demonstrating that individuals are protected equally by law regardless of nationality.”
On September 3, two Australian men filed a complaint with Police Colonel Somsak Thongkliang, Superintendent of Kamala Police Station. They reported buying a condominium unit in The Peaks Residences project for about 6 million baht and had already paid over 5 million baht but did not receive the unit. They then sued in civil court and won, but still haven’t received any compensation from the project owner.
An investigation by the Consumer Protection Police Division (CPPD) found that Kata Beach Company sold land without proper titles to many Thai and foreign buyers but couldn’t complete construction due to illegally issued building permits from the start.
Under Thai law, condominium businesses must build on land with proper titles only. The company’s actions were deemed a misrepresentation of facts to obtain reservation fees or contract payments worth millions of baht per case.
The project owner, Kata Beach Company Limited, claimed that when their permit was revoked, they couldn’t continue construction and offered victims the option to buy units in other projects. Years later, project representatives informed victims that construction couldn’t be completed on schedule and advised them to seek refunds directly from Kata Beach Company.
Later, Kata Beach Company representatives attempted mediation with installment payments, but when payment was due, there was no contact. The Australian clients investigated and found the company had insufficient assets to repay debts, leading them to believe it was a deception to avoid responsibility.
The CIB noted that consumer protection laws strictly regulate real estate development businesses in terms of contracts and advertising. Failing to deliver properties as agreed in housing projects is considered a fault of the operator, who must be directly responsible to consumers. If there’s evidence of fraud or deception, it could also constitute criminal offenses against the victims.
Victims must receive compensation for damages without discrimination based on nationality under Thai law. Such actions by operators severely damage the reputation of Phuket Province and Thailand. Police Colonel Somsak stated that Kamala Police Station has received the complaint and will conduct further investigations.
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