Palang Pracharath Party MP Pareena Kraikupt has agreed to cooperate with the authorities and hand over her 682 rai of Sor Por Kor land.
The embattled Ratchaburi representative softened the defence of her land ownership after the Agriculture Land Reform Office (Alro) vowed to seize the plots in tambon Rang Bua in the province's Chom Bung district if she failed to comply with the order.
Alro insists Ms Pareena has no right to the land which by law set should be allocated to poor landless farmers for agricultural purposes.
Last month, Deputy Agriculture Minister Thamanat Prompow, who oversees Alro, appeared to defend his party colleague following her claim that her family had occupied the land since 1946 before the enactment of land reforms, known locally as Sor Por Kor.
But as the investigation went on, Capt Thamanat was forced to concede her land possession is unlawful.
Yesterday he showed a letter of intent which Ms Pareena addressed to Alro on Friday, saying she is willing to return the plots and "give testimony as well as cooperate" with authorities.
As a businesswoman-cum-politician, Ms Pareena's status does not fit the definition of "poor farmer" so she must return the land, according to Alro.
However, Capt Thamanat said: "Alro will not take legal action against Ms Pareena" because her family has occupied the areas since before the land reforms law took effect.
"I've done my job without discrimination and as fast as I could," he insisted during yesterday's inspection of the plots, which house a chicken farm.
Workers have begun to relocate farm tools and demolished buildings after being given seven days to clear things out.
Though Ms Pareena has settled the Sor Por Kor-related problem, she is still at risk of being punished under a forest protection law.
The Royal Forest Department has accused her of encroaching on 46 rai of a forest reserve, which could land her in jail for up to 20 years or result in a fine of 2 million baht if she is found guilty.
Meanwhile, Veera Somkwamkid, secretary-general of the People's Network Against Corruption, accused some Alro and forest officials of dereliction of duty called on police to act against them for ignoring illegal land acquisition for years.
"If all wrongdoers escape laws, I can't imagine how we'll live in this society," Mr Veera said.