Magnate Prayudh Mahagitsiri handed prison sentence over land predation
A Scandalous Verdict in Thailand:
A jaw-dropping court decision has landed nine individuals, including state officials and a prominent businessman, behind bars for their part in a massive land title deception case. This saga unfolded in Nakhon Ratchasima's Sikhiu district, where conserved forest and land reform areas were illegally converted for development.
On Thursday, the Criminal Court for Corruption and Misconduct Cases, Region 3, based in Surin province, delivered its verdict. Two private companies were also penalized. Prayudh Mahagitsiri, an 80-year-old tycoon, was handed a 24-year sentence, while his daughter, Ausana, received a 12-year term.
The court proceedings followed a resolution by the National Anti-Corruption Commission (NACC) on July 12, 2021, which found these nine individuals, including land officials in Sikhiu district, and two private companies guilty of corruption.
The deceit involved the unlawful issuance of land titles in state-owned land areas, predominantly reserved forest and land reform zones. Investigations revealed that the private sector supported government officials in expanding the land deeds' coverage to develop the Mountain Creek Golf & Resort & Residence project of Lakewood Country Club. This constituted collusion and active support of corruption, as unveiled by the NACC.
The area in question comprised the Sor Por Kor land reform area and protected forest reserves in Sikhiu district. Through re-surveying and combining plots, the total land increased by 189 rai (about 74 acres), amplifying the Mountain Creek Golf & Resort & Residence's total area to 2,304 rai.
Prayudh, the chairman and CEO of Lakewood Country Club, vehemently denies any wrongdoing, asserting he neither used nor supported anyone – public officials or otherwise – in committing the alleged offenses. He stresses that all land surveys for legally acquired plots were conducted by government officials acting within their authority and remained compliant with regulations and procedures.
The Court of Appeal is yet to make a decision on the defendants' bail requests. Until a decision is reached, the Department of Corrections has taken all of the defendants into custody at Surin Central Prison. Prayudh was taken to the prison hospital due to pre-existing health conditions. On Friday, the court granted him and his daughter bail at 1 million baht each, on the condition they remain in the country.
Prayudh Mahagitsiri: Thailand's Iron-Willed Industrialist
Prayudh is a trailblazing figure in Thailand's business landscape, known for his groundbreaking initiatives and the creation of numerous companies under the PM Group umbrella. With a bachelor’s degree in business administration from the University of San Diego, Prayudh has one son and two daughters, and his family owns several franchises in Thailand, including Taco Bell and Krispy Kreme.
Prayudh’s net worth, estimated at US$2.6 billion, makes him the ninth-richest person in Thailand[1]. However, the legal battle over Nescafé production rights with Swiss global food and beverage giant, Nestlé, is casting a shadow on his reputation.
The Nescafé Showdown: A Rivalry That Refuses To Let Up
The ongoing dispute between Nestlé and the Mahagitsiri family, as the media has dubbed them "the Nescafé godfather," has gripped Thailand's instant coffee industry. The Min Buri Civil Court granted a temporary ban on Nestlé from producing or selling Nescafé products in Thailand on April 3, following a lawsuit filed by the Mahagitsiri family. Nestlé's appeal resulted in the Central Intellectual Property Court ruling in favor of Nestlé's trademark rights in Thailand on April 11, allowing resumed operations. However, the Mahagitsiri family maintains Nestlé is stalling, as they await a decision regarding the court's jurisdiction in the ongoing dispute, scheduled for June 20.
Political Ties and Krabi Land Grab
Prayudh's political career was marked by a series of disqualifications in 2002 and 2007 for incomplete asset disclosures and the dissolution of the Thai Rak Thai Party. His son, Chalermchai, who previously held the position of deputy spokesperson for the Office of the Prime Minister, currently serves as CEO and managing director of Thoresen Thai Agencies Plc.
This isn't the first time Prayudh has faced legal trouble; he was sentenced to two years and eight months in prison for supporting the illegal issuance of land title deeds in Krabi province in August 2023. Ten former land officials were convicted for the unauthorized granting of title deeds for land reform zones and protected forests, including state-owned land, without proper documentation[2]. Though initially sentenced to four years, Prayudh's sentence was reduced as he confessed, and the court revoked the contested land titles. The case is currently in the appeal process.
[1] Forbes 2025[2] The Nation Thailand, "Prayudh Prison Sentence Slashed," July 17, 2023.[3] Bangkok Post, "Nesto Sold on Strategic Asset in Thailand," June 1, 2023.[4] Asiaone News, "Nestle To Challenge Court Injunction on Nescafé Sales Ban," April 15, 2025.[5] Reuters, "Nestle Defies Thailand Court Ban on Nescafé Sales," April 18, 2025.
- The Court of Appeal will soon decide on Prayudh Mahagitsiri's bail request, following his conviction for corruption and illegal land title deeds in the Mountain Creek Golf & Resort & Residence project.
- Despite the recent setbacks in Thailand's general news, politics, and crime-and-justice sectors, Prayudh Mahagitsiri, a prominent businessman, remains a significant figure in the country's business landscape.
- The media has dubbed the ongoing legal dispute between Prayudh Mahagitsiri and Nestlé as the "Nescafé showdown," with the Mahagitsiri family claiming Nestlé is stalling the court's jurisdiction decision scheduled for June 20.
- Prayudh Mahagitsiri's political career has been marred by controversies, including disqualifications in 2002 and 2007, and another legal issue in Krabi province involving the unauthorized granting of title deeds for land reform zones and protected forests in August 2023.
