Complaint against neighbour encroaching on other's property

We bought an open plot and when we got it surveyed found that our neighbor has encroached few feet into our plot. With good will, we discussed and neighbor agreed that he would demolish the extended balcony. We initiated the construction in our plot and after few days when we asked him he is now changing his stance. He is saying he would not remove the encroached balcony. We also offered him one alternate of selling that encroached property to him. He is not ready for that too. He is not even ready to show his land papers and now answering recklessly that he will not do anything. Is there any way out, please suggest. Is demolishing the encroached balcony his responsibility or do we need to share that expense (it is his new demand now). Will we get any advantage by moving legally.