Increase in rent by owner in pagdi system

We live in a 1BHK pagdi system flat in Dombivli. Since January 2015, our landlord has increased the rent from Rs.495 to Rs. 5000. He owns 5 buildings and has done the same for all of the buildings which consists of nearly 200 houses. Out of which around 20 families have come together and are not paying rent because of this sudden increase in rent since 6 months(including me). We took suggestions from a lawyer where he suggested to pay minimum amount I.e Rs. 495/- by moneyorder if he doesn't accept we should file a complaint against him in case if he accepts, keep doing it till his next move. After doing that, the landlord sent us the receipt with stating the rent is Rs. 6000 p.m. is due since 6 months + interest of 6months for not paying it + property tax, - the amount paid. We are not satisfied by this type of suggestion by the lawyer. Landlord said if we continue to do this and when the due amount would reach the amount we have paid while purchasing the house(and not the market price of the house) he would throw us out of the house. Is this possible? Can he throw us out of the house? What other measures can we use to tackle this situation? Can a landlord increase rent as much as he would want to (he said he would be increasing the rent again next year)? And for those who pay the rent sincerely, he makes a receipt of an amount higher than he is actually charging and show as if he has discounted the rent for the tenants. So there are chances that he might throw them out after they have reached their purchasing price. And then he is planning to sell the place to some builder. What can we do to stop him from doing all this? Also he says a part of this land is illegal so if you file a case against me, people residing at the illegal part would be thrown out. Is that possible because we stay here for more than 25 years?