The land, claimed by Panthong Na Ranong, is covered by two title deeds and is close to Freedom Beach in Karon.
AMLO secretary-general Seehanat Prayoonrat said that there transaction committee made the decision to take the land today (Mar 9) as it was part of the Nak Kerd mountain which is within a forest reserve.
He also stated that the title deeds were clearly illegal and that government officials had been bribed to issue the deeds.
One of the deeds investigated covers 45 rai of land and the other 19 rai.
It was reported that Mr Panthong applied for the title deeds in 1989, but at that time officials rejected the request because the land was part of the forest reserve.
About 20 years later he successfully reapplied for the deeds as land officials reinterpreted aerial photographs and concluded that people had used the land before the declaration of the forest reserve.