KOH PHANGAN – In a significant crackdown on illegal business operations, authorities on Koh Phangan have confiscated nearly 400 cars and motorcycles from a rental company discovered to be operating without the required licenses. The coordinated raid, executed on October 21, 2025, resulted in the arrest of seven individuals, including foreign nationals accused of working illegally. The firm was also found to be offering unregistered daily hotel accommodations, prompting a broader investigation.

Russian National Arrested for Illegal Rental Business and Drug Possession on Koh Phangan

The operation was initiated following multiple complaints from tourists who reported that their passports had been unlawfully withheld by the rental company. A joint task force comprising the Tourism Police, Koh Phangan police, and local administrative authorities conducted a thorough inspection of the company’s premises in Moo 1, Koh Phangan, Surat Thani. During the raid, officers encountered a Thai employee managing the operations, a Russian national assisting customers, and five Myanmar workers engaged in maintenance and housekeeping duties.

The seized vehicles are now under scrutiny for potential connections to a series of reported motorcycle thefts in the area. Among those arrested was Mr. Valerii, a 39-year-old Russian national, who faces charges of illegal foreign employment. The other six detainees, including Myanmar nationals and a Thai woman, have been charged with either working without a permit or operating an unlicensed hotel. Officials are actively investigating the origins of the vehicles to determine any links to criminal activity.

Koh Phangan authorities discover 87 foreign customer passports held as collateral for vehicle rentals during a raid on a rental car company. #Thailand https://t.co/XwNCai6jDE

— Khaosod English (@KhaosodEnglish) October 22, 2025

According to authorities, the company was formally registered with two shareholders: one Thai and one Russian. However, investigators noted that the Thai shareholder had no financial involvement in the business and was solely responsible for internal management. The Russian shareholder, currently residing in Phuket, is reported to be a real estate investor. Police are examining whether the firm functioned as a nominee business, violating foreign ownership regulations.

Immigration Police Crack Down on Illegally Operated Hotels on Koh Phangan

This case represents one of the largest operations against a Russian-operated rental network on Koh Phangan. The investigation, which spanned over four months before culminating in the raid, highlights ongoing efforts to combat cross-border crime and unlicensed businesses in the region. Authorities have announced plans to continue their inspections and trace any criminal associations linked to the seized assets.

-Thailand News (TN)