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Neighbour building adjoining our site has not left any setback for his building and constructed right over their compound wall. But he is threatening me to stop my construction even though I have left space a couple of feet away from his building. This is coming under Bbmp jurisdiction. Please advice what steps I need to take.

He has no right to stop the construction. where is your construction place and why is he threatning you and what is he saying?(reason) First both of you talk what's the problem and solve the problem amicably if he is not listening ask him the reason then take further steps (we are there to support you)

First of all, if you have left some setback and if your neighbour has constructed wall to wall ; then he is at disadvantage when he goes to BBMP for complaining.
So, dont worry so much about his threats. If he is bullying you too much, then you should use your contractor muscle power to soften him !
it so happens that sometimes, we get unruly neighbours and we have to live with them..
we though I can say dont have much friction with erring neighbour, but at times ; sheer muscle power does the work for some folks..

Now that the neighbour has put up many floors over his compound wall, he is always at advantage because the building is already inhabited and I am still constructing with fear.

Dont worry he cant go to BBMP as he has not left setbacks and he will be on risk if he goes to BBMP

Keep going if he disturbs you much please go to BBMP office and seek their help

Kumar, I had the same problem.

After talking to lawyer(s), contractor(s); they suggest a compromise with neighbor. (Note: In my case compromise involved small amount of money)
When I asked why? They say:

• 1. Any official involvement of BBMP will cost you a lot in form of bribes, and it will just postpone the issue as neighbor can approach court
  2. If he approaches a lawyer, they will give him ideas saying setback should be 1 meter and encourage him to file a case
  3. BBMP or Court will issue a stay on an under construction house, but a demolition order will take years
  4. Even if you get a court caveat, it will not be valid for too long; as any BBMP engineer visit will start the problem all over again
  5. you will be sitting on a dead investment till BBMP/Court resolves the issue

my suggestion is to find a good negotiator in your near circle and sit your neighbor and come to a compromise.(I know that its not the solution I or you want, but I had live with it).

Yes, what you told makes sense, the bbmp will only target the under construction building with little deviation , rather than a building which is already constructed with 100% deviation.