The government cannot build a mud road on private land. If it is still your land then you should file a civil suit against the government for the possession of land and permanent injunction. First you should file an application to the Tehsildar for the measurement of your land.
The measurement is necessary to find out where your land is situated. If the Tehsildar demarcates your land in the area of mud road then it shall prima facie prove that the mud road is made on your land.
Thereafter, you should send a legal notice to the government under Section 80 of the code of civil procedure. In the said notice you should demand from the government to transfer your land with compensation (mesne profit). The government will compensate you because it has been taking illegal possession on your land.
If the government does not act to your notice within 60 days then you should file a civil suit. Notice under Section 80 code of civil procedure is mandatory in the suit against the government.
You cannot put a fence on government land despite that it is your land. The public road prima facie proves that it is government land. Now the burden of proof lies upon you to prove that it is your land. Unless you discharge this burden you cannot interfere in the government road.
Hence you should wait till the decision of the court. If the court passes a decree in your favour and declares that it is your land then you are entitled to get possession. After taking possession you can use this land for any legal purpose.