HowTo Deal With Encroachment

Hi Sir, Around 15 families living in the street. we have paid one lakh sixty thousand Rupees on JUNE 1st ,2014, for our street road development purpose on SSS scheme. The road width is 15 feet .But till now road has been not yet furnished.Also Before our property one local area person is occupied (land grabbing)road and stopping road development work, Panyachat president also not taking any decision for this process.Local party is expecting 10 lakhs amount from us.As per the the VAO and FMB confirmation we have 4.6 meter road access for our street. But currently we have only 8 feet road width only. Remaining 7 feet occupied by the local area person.Here I am giving few info about land history and I will enclose FMB map also here. 1.Local person have 8 cent POA.In this 8 cent only 5 cent only he registered in his son name remaining 3 cents still in POA. Patta is not in his name. Still its in the previous owner name(1988 Patta given year). 2.In the FMB copy 4.6 meter mentioned as dotted lines..please advise me how to handle this issue.