Report Hotel Lease Scam: Indian Investor Loses 960,000 Baht

[snoop1130]

Picture courtesy of KhaoSod

 

In a puzzling legal tussle, an Indian businessman finds himself embroiled in a dispute after a rental agreement turned sour in Pattaya, Thailand. The businessman had entered into a contract to rent a 32-room hotel, complete with common areas, for three years. A deposit for three months, amounting to 960,000 baht (around £21,100), was promptly paid. Despite fulfilling these requirements, access to the property was denied from the agreed date of August 1.

 

The businessman, represented by his partner Wassana (pseudonym), 42, reported the issue to the police in Mueang Pattaya district on the night of August 20. Wassana, a partner in the real estate firm managing the affair, recounted the unexpected refusal to honour the lease agreement, citing the hotel owner’s ongoing rental advertisements on social media—a clear violation that raised suspicion about the hotel owner's intentions.

 

The businessman, eager to commence operations, was left in limbo. Attempts to resolve the matter directly with the hotel owner were met with evasion. The owner advised taking the matter to court, further complicating an already fraught situation. Wassana, visibly distressed, urged authorities to track down the unscrupulous owner and initiate legal actions to recover the paid deposit and secure rightful access to the property.

 

This incident has placed a spotlight on the challenges faced by foreigners navigating property leases in Thailand, especially in bustling areas like Pattaya where tourism and investment often collide. It underscores the importance of due diligence and legal safeguards when engaging in substantial financial transactions abroad.

 

Interestingly, this isn't an isolated incident in the region. Recently, the Pattaya Tourist Police Bureau made headlines by cracking down on a separate elaborate scam involving fake hotel bookings. In May, three individuals were arrested for operating a fraudulent operation that duped tourists out of over 700,000 baht (around £15,500). The scam involved creating counterfeit Facebook pages resembling established Pattaya hotels, offering irresistibly priced deals on nonexistent bookings.

 

These arrests followed a coordinated effort across multiple regions, including raids in Chanthaburi, Bangkok, and Ayutthaya. This scam has served as a wake-up call for both tourists and authorities, highlighting the need for vigilance and stringent verification of online offers.

 

A spokesperson from the Tourist Police Bureau emphasised the growing sophistication of such scams, pointing out how scammers lured victims with attractive yet fake promotions. These incidents underscore a broader issue of fraud targeting both tourists and investors, sometimes resulting in substantial financial loss and damaged reputations.

 

As the Indian businessman pursues legal recourse, his case serves as a critical reminder to prospective investors and holidaymakers alike about the potential pitfalls of international dealings. It calls for robust legal frameworks and effective law enforcement to protect those investing in Thailand’s vibrant hospitality sector.

 

In conclusion, the intertwined stories of fraud and legal disputes in Pattaya reflect the region's dual nature as a hub of opportunity and a potential minefield of deceptive practices. For Wassana and her business partner, the quest for justice continues, amidst assurances from local authorities to prevent similar occurrences in the future.

 

  Adapted by ASEAN Now from The Thaiger 2025-08-21

 

[hotchilli]

15 hours ago, snoop1130 said:

In a puzzling legal tussle, an Indian businessman finds himself embroiled in a dispute after a rental agreement turned sour in Pattaya, Thailand. The businessman had entered into a contract to rent a 32-room hotel, complete with common areas, for three years. A deposit for three months, amounting to 960,000 baht (around £21,100), was promptly paid. Despite fulfilling these requirements, access to the property was denied from the agreed date of August 1.

Welcome to doing business in Thailand.

[mikeymike100]

Did the Indian guy go thru a lawyer, or directly Himself?

[Freddy42OZ]

What the hell is going on with those fingernails 🤮

[save the frogs]

How to get around being scammed in such situations? 

 

[NorthernRyland]

It's like Spy vs Spy but now it's Scammer vs Scammer.

[J Branche]

Deals like this require an Escrow account.  Most in US can be trusted here in Thailand unknown. 

 

The owner gets proof of funds from Escrow.  Escrow holds money until given the okay to release the funds when terms of agreement are met.

 

It's not 10,000 baht this is almost 1 million Baht not a small amount in Thai standards.  

 

Other problem is foreigners coming to Thailand thinking that business and things work the same as your home country.  Good faith deposit would have been about 5% 50,000 baht and rest delivered when keys are in hand.

 

[Sig]

25 minutes ago, mikeymike100 said:

Did the Indian guy go thru a lawyer, or directly Himself?

Directly from the article - "The businessman, represented by his partner Wassana (pseudonym), 42, reported the issue to the police in Mueang Pattaya district on the night of August 20. Wassana, a partner in the real estate firm managing the affair..."
I could be wrong, but it sounds like he used a Thai real estate company. One would think that would be a decent enough way of doing it, but... one needs to remember what country one is in and that anything can happen to anyone (particularly foreigners) at anytime, even if you have a lawyer.

[Sig]

25 minutes ago, Freddy42OZ said:

What the hell is going on with those fingernails 🤮

Are they any different than just about any other woman in the country???

[kiwikeith]

14 minutes ago, Sig said:

Directly from the article - "The businessman, represented by his partner Wassana (pseudonym), 42, reported the issue to the police in Mueang Pattaya district on the night of August 20. Wassana, a partner in the real estate firm managing the affair..."
I could be wrong, but it sounds like he used a Thai real estate company. One would think that would be a decent enough way of doing it, but... one needs to remember what country one is in and that anything can happen to anyone (particularly foreigners) at anytime, even if you have a lawyer.

My friend in NZ, thai lady went back to issan to take care on dyeing mother, only to find brother had stolen her chanote and sold the farm land using a crooked lawyer ,when she found out and complained he beat her up, TIT

[bendejo]

If a Thai dislikes farang, IMO Indians would be near the top of the shirt list.  This can help the defendant when dealing with the courts, particularly if the Indian knows the odds of winning in court are against him.  Well, if he knew that before he wouldn't be in this situation.  Indians are no strangers to corruption, just the style may be different here.