You are dealing with a classic boundary encroachment after layout formation, and your frustration is completely understandable. Unfortunately, situations like this are rarely resolved by authorities on the ground and typically require a civil remedy.
Your act of fencing the remaining portion of your plot does not amount to acceptance of the encroachment. Protecting your property is a reasonable and lawful step and does not weaken your claim over the portion that has been encroached. The police observation on this point has no legal basis.
The conduct of the neighbouring landowner does indicate encroachment. The fact that the land was sold, a layout was formed, and no objection was raised for nearly a decade works in your favour. A unilateral survey conducted now cannot override an approved layout or long-standing possession. However, despite this, police authorities generally treat such matters as civil disputes unless there is clear criminal force or damage.
In practical terms, none of the authorities you approached—police, BMICAPA, Panchayat, or ADLR—will conclusively resolve this issue. Their roles are limited, and they tend to avoid intervention in boundary disputes. The only effective forum for resolution is the civil court.
As far as proving encroachment is concerned, while you can engage a private surveyor and obtain a report, such a report will only have limited evidentiary value. It may help you understand the extent of encroachment and support your case, but it will not be treated as conclusive proof. The strongest evidence comes from a court-appointed commissioner, usually a government surveyor, whose report is relied upon by courts.
On the nature of the case to be filed, your understanding is broadly correct that this is primarily a matter of removal of encroachment. A suit for mandatory injunction (for removal of encroachment) along with permanent injunction (to restrain further interference) is appropriate. However, as a matter of caution and strategy, it is advisable to also include a limited prayer for declaration of boundary or extent. Even if your title is clear today, defendants often raise disputes during litigation, and including this relief avoids procedural complications later.
You should proceed with filing the suit along with an application for interim relief. Through this, you can seek immediate protection against further encroachment or alteration of the property. At the same time, you should request the court to appoint a commissioner for measurement of the land. This step is crucial and often becomes the turning point in such cases.
In terms of documentation, you should be prepared with your sale certificate or sale deed from the bank, layout approval documents, site plan, possession proof, photographs of the encroachment, and copies of complaints made to authorities. These will form the foundation of your case.
Regarding the timeline, interim protection can usually be obtained within a few weeks to a couple of months. Final resolution may take longer, depending on the court, but once interim protection and measurement are secured, your position becomes significantly stronger.
As for the bank, since the property was purchased through e-auction, it is typically sold on an “as is where is” basis. This limits your ability to claim compensation from the bank unless there is clear evidence of fraud or concealment, which is usually difficult to establish in such cases.
If other plot owners are facing the same issue, a coordinated approach will strengthen your position both legally and practically.
At this stage, the most effective course is to move away from administrative complaints and initiate a properly structured civil proceeding with a focus on injunction and measurement. That is where you will get actual relief.