Regarding Building House In Industrial Alienated Land

We around 20 houses have built a house in Industrial Alienated Land, and only 3 industries are running around our area. Now one of the industry person is building a new building where he was doing business by demolishing the old building. As we residents are disturbed by the industry we complied to the panchayat limits stating not to allow the construction in residence area. But now the industry person is filing complaint against us stating that this is industrial land and we are illegally constructed house and causing inconvenience to the industry. Is there any way they can harm us legally? We are residing there for the past 10 years our houses do not have set back and some of us have left 1 feet. Where as the industry building is very huge around 100 m x 80 m and they have left only 5 feet set back, but they have got the same approved from panchayat. Will they trouble us for not letting set back. Is there anything can be done to fight back and will they trouble us.