Violence and abusive nature of neighbour

I constructed my house and moved into it during mid of 2011. The neighbors (having constructed their house and staying from past 20 years ) in the immediate next site have been creating problems right from construction days and continue to do even now. I had been warned by the other families in the neighborhood about these ill behavioral neighbors but i had no idea how bad anyone could be. To be on the safer side i have my own compound wall adjacent to the neighbors compound wall since i did not want to go with the usual common wall knowing its a problematic family. During the past five years we have been subjected to harassment by means of false compliant to water board, electricity board for no fault of us. Later we learnt that the neighbor has been actively doing this just to harass us and disturb us. There have been instances where he has broken our window panes, lit fire to clothes that we had put to dry. During the past few weeks he is actively indulging in demolishing the compound wall that we had constructed. He is successful in damaging a part of it already. We have the CCTV installed only to monitor such activities and the footage shows clearly active involvement of all the family members [the neighboring owner, his wife and his son]. Since these guys are psychopathic and use only abusive words no one in the neighborhood comes for our help. Repeated complaints to police station also seem to fall on deaf ears. They reply stating he (the neighbor) is old man and they cant do much action against him. I have even showed the violent behavior footage but i do not see the police department taking action. I have been ignoring this neighbor for long thinking that one day he will correct himself. But its just increasing day by day and we have to always hear him spitting at us, abusing us with foul language, playing loud music in the early morning apart from the physical damage he continues to do. Its very unfortunate that me and my wife work and are outside most times and its my parents who have to tolerate this. We have a kid aged 10 and this environment is not looking healthy for his childhood. Is there any way from Indian law from which we can be protected from such neighbors? I dont intend to cause any problem to anyone in neighborhood. I just want him to be at peace and help us also live in peace. Thanks.