This tactic is famous as "bulldozer justice" and it is not from Israel, but from Yogi Adityanath's UP. The basic principle at work is roughly this : if an crime accused goes missing, and his/her property is illegal/unregistered, demolish that illegal property, in part or in whole, and continue searching for him/her.
An interesting corollary is that if the local authorities have erred in claiming the property is illegal/improper, they'd can be sued and Indian judiciary will ensure compensation.