1. Setback Spaces or say "Utility Spaces" (electric cables, drainage, etc....) under the Regional Town Planning Act and CANNOT be encroached upon and neither such spaces, can be claimed as Adverse Possession. It would be a prosecutable offence also under the local Fire Act.
2. File Complaint to the local Municipal office /Town Planning office, for directions to demolish compound wall and restore the same in its original condition.
Keep Smiling .... Hemant Agarwal