The premises under pagdi or on rental agreement, it cannot be considered as own property of the tenant, i.e., once a tenant is always a tenant.
Therefore your mother in law is also a tenant only in that house.
She is the legally valid tenant since now the agreement has been transferred on her name, hence she is the legally recognised tenant.
She can very well instruct you to vacate the premises, you cannot claim any legal rights on it.
Since you were staying there, for your habitable conveniences, you have renovated the property, but that cannot entitle you any right over the tenancy rights of the property.
An amicable settlement shall be the best option under this situation instead of agitating and losing everything.