However, a strip of land between the resort and the beach was declared to be public parkland - even though the narrow strip totalling half a rai was purchased for 25 million baht to enable guests at the resort to easily reach the beach.
The person who sold the public strip of land for 25 million baht is now believed to be living in the US, according to the Director of Phuket's Sirinath National Park.
If the resort is ever completed, guests will have to travel quite some distance around the parkland strip to reach the beach.
The Peninsula is one of 14 cases of alleged encroachment that formed Phase I of an investigation begun two years ago by Damrong ''The Demolisher'' Pidech, who was then the Director General of the Department of National Parks, Wildlife and Plant Conservation.
Those cases and other cases in subsequent phases involve a total of 2700 rai allegedly encroached upon from the park in 369 titles.
The future of two luxury resorts, award-winning luxury villa projects and planned developments hinge on the outcome of the investigations, which have been sped up on the orders of the military's National Peace and Order Council.
Work on the Peninsula, across 6.30 rai, ceased about 10 years ago.