How to demolish the illegal construction made on panchayathi road

Sir i have a querry regarding , can a person have right to pass through drainage canal to walk on panchayathi road and to whom ishall complian to demolish the illegal construction made on panchayathi road if panchayathi executive officer and president is supporing such illegal construction made on road belongs panchayati. the issue arises as follows, we purchased a land and constructed a house in half part which has road on west towards south to walk, and the remaining half on east side has no way to walk so we purchased a 10feet which is infront of drainage canal connects to panchayati road with an intention to pass through such canal to walk on east side road, But my neighbour claims that we have no right to walk on such road which is also infront of his home and more over made an illegal construction as an additional dewlling attached to his house to the panchayati road exclusively by not allowing us to walk on that side. in these issue they filed suit against us and court cancelled it by stating if they want to appeal against us they shall give expenses incurred by us regarding this issue. but even after 1.5years they did not give damages to us and not allowing to walk on such road, we gave a complaint to panchayati executive officer against them for such illegal construction made on panchayati road but panchayati president was there relative so they are not taking against them and more over panchayati officers are saying these things: 1.since my neighbours house is last house to road they made construction on road[supporting them] and 2.asking us, you have the way on other side of house so walk on that side but my intention is to sale the land in which house is not constructed by creating a way to walk because without way to walk no one will buy such land that's why we are struggling for these. so here are my questions: 1.to whom i shall complain against on persons who made illegal construction on road and on such persons who supporting them. 2.can i file a suit against my neighbour for wasting my time by filing improper case againist me which reduces my image in society and can i claim vindictive damages for the mental agony faced by me. thanking you sir. k.sateesh, [deleted], 25-155/2, ramarajya nagar, kabela center, vijayawada, andhra pradesh.