Plot construction issue

Dear Client,
From the contents of the query, it appears that your neighbour is expecting more than market rate of the land from you understanding your proven fault. It may be noted that unauthorised construction encroaching others land, may land the encroacher to face criminal prosecution for an illegal encroachment and criminal trespass triable under Section 441 of IPC(Section 329 of BNS) once an FIR/ complaint is lodged by the aggrieved party in the police station or the jurisdictional court. Typically, criminal proceedings under Section 329 of the Bharatiya Nyaya Sanhita (BNS) are not compoundable as the offenses under this section are punishable with imprisonment, either alone or with a fine. However, the High Court can make the offence compoundable by exercising its inherent powers under Section 482 of the Code of Criminal Procedure, 1973(replaced by Section 528 of BNSS, 2023) based on the settlement between the parties or specific facts and circumstances of the case. This issue has been decided by the Constitution Bench of the Supreme Court in the case of Gian Singh Vs. State of Punjab and Another (2012) 2 SCC (L&S) 998 wherein it was held that the power of the High Court in quashing a criminal proceeding or FIR or complaint in exercise of its inherent jurisdiction is distinct and different from the power given to a criminal court for compounding the offences under Section 320 of the Cr. PC (replaced by Section 359 of BNSS, 2023). Inherent power is of wide plenitude with no statutory limitation, but it has to be exercised in accord with the guideline engrafted in such power to secure the ends of justice and/or to prevent abuse of the process of any Court. So, in the given scenario, try your best to settle or resolve the matter mutually through mediation/conciliation with the neighbour to avoid criminal prosecution and all sorts legal consequences, failing which, consult with an experienced Advocate for tailored advice and steps to navigate the issues effectively.