PHUKET, Thailand — Thailand’s Interior Ministry has significantly expanded a sweeping crackdown on illegal business operations across Phuket, ordering inspections of more than 361 high-risk enterprises following a tense confrontation at a religious center in Patong where an individual incorrectly attempted to claim extraterritorial authority.

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The intensified regulatory drive was catalyzed by an incident during a routine inspection at the Chabad House in the Patong subdistrict of Kathu district. According to official reports, an unidentified individual approached the inspecting officials and challenged their authority over the premises, reportedly asking, “Don’t you know that this is Israeli territory?”

Deputy Interior Minister Polpee Suwanchawee swiftly and firmly rejected the assertion, establishing the government’s unequivocal stance on national sovereignty. “This is Thailand. Everyone on Thai soil must comply with Thai law. No one has the right to claim sovereignty over Thai territory,” Polpee stated. He further emphasized that the government’s enforcement actions are entirely impartial, stressing that there is no discrimination based on nationality, source of investment, or religion, and that all foreign residents and business operators are subject to Thai law on an equal basis.

The initial inspection at the Patong center was conducted by a multi-agency task force comprising officials from the Interior Ministry, local administrative authorities, the Immigration Police, and the Tourist Police. The primary objective of the operation is to root out the illegal use of Thai nationals as nominee shareholders acting on behalf of foreign investors, a practice that violates the country’s Foreign Business Act. Authorities are also targeting businesses operating without the requisite licenses or permits.

Today Chabad Houses all under investigation :

This is Thailand': minister hits back after 'Israeli territory' claim in Patong
A routine inspection in Patong turned into a viral moment after a man inside the area's Chabad House reportedly told Thai officials they were standing… pic.twitter.com/uQJgZNHcIo

— Heidi La Levantine (@LadyJustice9111) July 26, 2026

In the wake of the confrontation, the Interior Ministry has dramatically widened the scope of its enforcement drive. The expanded operation now encompasses more than 361 potentially high-risk businesses across the island. The targeted sectors include hotels, luxury villas, restaurants, and tour companies, all of which are being scrutinized for suspected attempts to disguise foreign ownership through illicit nominee structures or for operating in violation of local zoning and licensing regulations.

The crackdown underscores the Thai government’s renewed commitment to enforcing corporate transparency and regulatory compliance in one of the country’s most vital economic hubs. Authorities have warned that any business found to be utilizing illegal nominee arrangements or operating without proper authorization will face severe penalties, including fines, forced closures, and the deportation of foreign nationals involved.

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As the multi-agency inspections continue across the province, law enforcement and administrative bodies remain focused on ensuring a level playing field for all legitimate businesses while firmly upholding the rule of law.

-Thailand News (TN)