The developer of the Ashton Asoke project, Sukhumvit 21 in Bangkok, Thailand, has had its building permit revoked by the Supreme Administrative Court. This decision has a significant impact not only on the joint venture between Thailand and the Japanese company Mitsui Fudosan, but also on the 142 foreign families living in the residential complex.
The project is a joint venture between Ananda Development and Mitsui Fudosan under the name Ananda MF Asia Asoke, with an ownership ratio of 51/49. The total value of the project is 6.481 billion baht, with 87 percent of the units, worth 5.653 billion baht, already occupied.
Currently, 580 families are co-owners of the condominium, totaling 668 units, divided into 438 Thai families and 142 families from 20 different countries. Approximately 84 percent of these families have lived there for four years, while the remaining 13 percent face a total loss of over 200 million baht to Ananda Development.
The problem with the project, which has dragged on for seven years, stems from the use of land owned by the Mass Rapid Transit Authority (MRTA) of Thailand as the building’s entrance and exit. The court has ruled that MRTA land cannot be used by private companies for construction purposes, which has led to the denial of building permits and legal challenges.
The situation is further complicated by the fact that there are more than 13 similar projects in Bangkok, both residential and commercial, that have applied for rights of passage, with the MRTA having already received over 100 million baht in fees.
Chanond Ruangkritya, the CEO of Ananda Development, explained that the case started with the Stop Global Warming Association suing the government organizations, but the company as well as the local residents are the only victims, as they had followed all legal procedures to obtain the construction permit.
He mentioned that the company would seek a meeting with the Bangkok Governor and MRTA within 14 days from July 27, 2023 to find a joint solution to the problem.
“The government, both the Bangkok Metropolitan Administration and the MRTA, need to help us find a solution for us and our customers. We are currently in a difficult situation and do not know how to solve the problem,” Chanond said.
