Yes, you can seek compensation for damages caused by illegal encroachment in India. Encroachment is when someone illegally enters and occupies another person’s property, which is addressed under Section 441 of the Indian Penal Code (IPC), 1860. The law treats encroachment as both a civil and criminal offence, and there are several remedies available for property owners.

First, you can file a suit for an injunction, which is a court order to stop the encroacher from continuing their illegal occupation or to remove any structures built on your property. This can be either a temporary or permanent injunction depending on the severity of the encroachment and the circumstances involved​.

Second, you can claim damages for the loss suffered due to the encroachment. The judiciary can order the encroacher to pay compensation based on the current market value of the land and the extent of the damage caused. Compensation can also be sought for mental harm and other non-tangible losses​.

To pursue these legal remedies, you need to approach the court under Order 39, Rules 1, 2, and 3 of the Civil Procedure Code. This order provides the legal framework for seeking injunctions and claiming damages for encroachment​. Additionally, it is advisable to maintain proper land records  for proving illegal possession of the property.