Chapter case and mental harrasment

One of my relatives who live in Manmad (nashik district) have been facing mental harrasment since 2009 from their neighbour who live directly adjacent to their plot. My relative is a retired railway officer living with wife and 5 children (3 daughters 2 brothers). One of the sons managed to save some money and decided to build an upper floor on the existing house. The only mistake he made was he started construction without a building permission from local municipality. Neighbour filed complaint in municipality for illegal construction and claimed the 'pardi' is long and water will fall on his plot. It took 2 months to sort building permission and now they already have it only after compromising with neighbour and his letter submitted in municipality. But this is not the problem. The neighbour has been creating nuisance since 2009 when he damaged the compound wall for installing his staircase. Retired uncle didnt raise a voice as the family are simple down to earth people and always avoiding issues to stir. Neighbour continued his 'dadagiri.' His mother would defecate in front of the main gate, children peeing outdoor, throwing rubbish in front of uncles gate etc. People would come to see the girls for proposals but neighbours would meet them outside and create rumours to defame whole family. List is endless and you can imagine the mentality of these people. The two brothers work in the train serving food and their home is financed by their moms sister who also lives with them and practicaly raised them. She is also no less. Non stop fighting and loud screaming was always normal in their home.(neighbours) Last year they rented their upper floor to a GRP policeman (railway police) and ever since then the two brothers think they own the law. The GRP guy advised the two brothers to file complaint in municipality and really start harrasing so that they (uncle) would sell at any price and leave area. I stepped in the scene 2 months ago. The youngest daughter stood up to fight against this menace. She filed a complaint of mental harrasment and public nuisance and gave entire history of neighbours incidents including threat to life of all family. 5 names were given (2 brothers, uncle and aunt and GRP police) After investigation police filed a chapter case against only the two brothers. They said the two (aunty and uncle of neighbour) are senior citizens and crpc 149 is done. The GRP will face his own inquiry from his department. No supporting documents were provided regarding that. After a couple of days one of the two brothers started abusing verbally my uncle. Same moment we went and filed a complaint under 504 and next day met PI of police station to cancel their chapter case bond. They sent to magistrate for cancellation but no news yet. The two brothers filed a false case claiming we also abused them ( which we didnt). I took up the matter to area Dysp and he just took it lightly. I didnt receive an answer as to why the chapter case was only done on 2 people. The neighbours have still not bent and are acting like slumdogs. We filed a complaint in the municipality against their drainage, illegal stairs, filthy water etc and notice was issued to them. Since then they have been acting like psychos to take revenge! What action can we take in court (criminal and civil) to put them straight?