Illegal Land Acquisition By the Town Panchayath

I have a Property in Kushalnagar Town, Coorg District, The property falls on the National Highway Between Mysore and Mangalore. My property dimensions are 25 feet wide by 75 Feet Length as per the Old Form-3, Recently the Government has been issueing a E-Sathu, a new kind of Form-3, when i applied for it I was shocked that the town Panchayath had shaved off 15 feet in Length and given the dimensions in metres. when I enquired they informed verbally only that was the road margin for the National Highway, My question is Can the Town phanchayath acquire the land by a Back Door Method without the NHAI or the central Government Notification of any sort, or the necessary formalities.like compensation etc. Because they are disvesting me of my land by strole of a pen and forcing it on me. Secondly the land behind my site is government land, where as my neighbours have grabbed it by paying a Rs,. 5 lakh Bribe to the panchayath so their Form-3 is showing to the full extent of their property. I do not have that kind of money for under the table dealing so I am confused and have not accepted the new Form-3, Please advise me what should I do.