You should arrange a meeting with your in-laws for amicable settlement of dispute with your wife. Engage in that meeting some elder persons or family members from both sides. Put forth all the issues and misunderstandings and ask them to give an amicable solution.
You must state the behaviour of your wife and her demand to settle in another city. Also unveil the undue interference of your in-laws and their dominating behaviour. Don’t hide anything in that meeting. You should not give any solution thereof. Let the members devise a peaceful solution to all these disputes.
Also read: What to do against the false allegation
Thereafter, your wife cannot file a false criminal case arising out of the current matrimonial acrimony. When she would have an opportunity to express her grievance in that meeting thereafter she would not mingle the fact so as to fabricate a false criminal case. You can pray the High Court to quash the criminal proceeding if your wife files any false criminal case. Court always appreciates the parties to do amicable settlement of their dispute.