Supreme Court Drops Bombshell: Imminent Demise of Ashton Asoke-Rama 9 Revealed! 668 Families Left in Limbo as 14-Day Deadline Looms!

In a recent development that stands as a precedent within Thailand’s real estate industry, key state agencies as well as the developer of Ashton Asoke-Rama 9, have been held accountable for the ensuing damage. They’ve been given a stringent timeline of 14 days to rectify the situation without resorting to the building’s demolition.

This pivotal ruling was upheld by the highest of administrative courts which challenged the lower court’s decision to revoke the Ashton Asoke-Rama 9 project’s building permit. Essential players in this controversial case include the Mass Rapid Transit Authority of Thailand (MRTA), as they aimed to use the disputed land for a railway project’s initial phase.

The land initially set aside for the towering condominium project was adjacent to a public road, the Asok-Montri Road, but a portion of it was reclaimed later to accommodate the project. Elucidating on the finer details, legal advisor Pisit Detchaiyasat from WCP made a noteworthy observation. He specified that reclaimed land cannot be handed over to private entities for building purposes. Consequently, any permit granted by government bodies for building on such land conflicts with the law, as the land falls short of the stipulated requirements as per the Ministry of Interior Regulation No. 33 (1992).

Caught up in the crosshairs of this crucial ruling of the Supreme Court, the occupants of Ashton Asoke-Rama 9’s 668 units will undoubtedly feel its effects, said Prasert Taedullayasatit, Property Business CEO at Ananda Development Plc.

He went on to say, “Our fight must go on to determine who will bear the responsibility for this issue, given that all five government agencies have been sued. We need to engage in discussions with the State Railway of Thailand (SRT), the Bangkok Metropolitan Administration (BMA), along with other agencies involved, in order to identify a solution and lessen the damage.” He added, “We expect this process to span around 14 days.”

The implications of the Supreme Administrative Court’s ruling extend beyond the immediate concerns of the residents, potentially shaking the confidence of investors and consumers alike. Residents have been living in the property for over four years since Title deeds have already been issued, Prasert reasoned. Moreover, this controversial case isn’t the only one of its kind, as numerous similar projects are currently grappling with complications stemming from land reclamation laws associated with government agencies.

Prasert also warned of another potential fallout of the court’s ruling; a loss of confidence among bondholders as the project still has unsold units worth about 828 million baht. With the company owning half of the shares this equates to an asset deflation value of 250-300 million baht. This noticeably lowers the ability to service the principal and bonds, he stated.