Neighborhood aunty picking fight with me over my dog

I (29F) live in India. I own a dog - beagle, 2yr old. We have had issues of stray dogs around my building therefore never taken my dog out for walks due to the fear of being bitten my stray dogs. But recently (15days ago) we started taking my dog out for walks.

There is a old couple who live in the road adjacent to where my home is located. At the corner of my lane and this road ( where this couple lives) is a huge dumpster. People dump all sort of garbage there is this corner is usually stinking. Alot of those people also take there dogs to poop/pee there during there walks. Most of the garbage at this corner belongs to the 6 houses in this lane including the old couple's house.

5 days ago when my dog was pooping this couple came to us and started fighting that this is wrong and we should not do this. We didn't want to engage in a fight so we apologized and moved on.

4 days ago when we took our dog for walk this couple kept following us till we crossed that lane completely

3days ago same this happened they kept staring and following us

2 days ago my brother and dad went for the walk where this aunty started to verbally abuse them and they kept walking

Yesterday we didn't find them at all during the walk

Today I say her while my dog was pooping at the same corner. I asked my brother if she is the same aunty and my brother said yes. Meanwhile this aunty heard it and came shouting that I'm the same woman. I respectfully told her to talk to me directly n not abuse anyone.

I told her I don't think I'm doing anything wrong here. My argument was:
  1. Multiple people do this in the colony then way fight us everyday
  2. She has no control over stray dog who cause my more such issues however I'm being very responsible with my dog
  3. Mine is a registered dog and she can go to the city Development authority if she really feels I'm encroaching her rights to anything n file a complaint rather than being abusive.
  4. The whole following n staring at us is a whole lever of perverted behavior n i too can and will file a complaint of this continue
She kept abusing us and my dog, she kept saying we should not walk in her lane. I can't help it if the way to the park is through her lane I explained it to her but she didn't hear, in the end I too lost my cool and shouted on her that she owns one house in the lane n not the lane so she can't decide who goes through n who doesn't. It blew inti into a full argument around she was pointlessly bullying us.

I want to retrospectively understand how I should have handled this better. Am I in the wrong, if yes what can I change to not cause inconvenience to my neighbors.

If the answers are specific to Indian context it will be better because I know owing / walking a pet rules are very different in India vs the West. And social fabric, responsiveness of authorities also work very differently. And the last the nosy aunty behavior happens to a greater damaging extend here.
 
@alvacam Doesn't it mean there could be more such women in another block, who will create similar nuances about walking my dog plus that area will be further away from mine which mean chances of them knowing me will be low, they will simply perceive me as an outside intruder who is walking my dog in their area and the first argument most people give is why don't you walk your dog in your area
 
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