See you can file a suit for seeking damages for defamation and malicious prosecution against them after B report is accepted and further more you can also file a complaint under 499 IPC for defamation against them with magistrate.

1. She is now taking a peaceful and prudent step by withdrawing the case and if that is so then it is advisable that you may not run around court for teaching a lesson.

2. She appears to have been withdrawing the case voluntarily and if that is so then bury the hatchet and move on in life.

3. Initiating  a case against her would only make you full with bitterness and hatred causing only mental agony.

Forgive and forget this issue and do something constrictive for you or the family . 

1) Now you can back fire her that,she has put false allegations against you and ask her accept that all allegations are false due to bad influence she has raised all allegations against you. so case will be charged against her, than only you can withdraw your case against her.

dot file any case case against her 

2) if you do that she would not with draw your case 

3) dowry harassment cases take 10 years to be disposed of 

4) complaints of criminal defamation take 10 years to be disposed of 

For the false case you have to file PCR before the court for punishable under section 182 of IPC.

1. FIRSTLY, get a proper certified copy of the police B-Report and her complete statements /complaints made to the police.

2. You can file a Police FIR, requesting investigation and charge-sheet, for offences like harassment, intimidation, threatening against the person, supported with all relevant supporting documents.

3. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.

Keep Smiling .... Hemant Agarwal

Yes you can file defamation and false prosecution

The woman wants to withdraw the case. File a complaint against her before a magistrate and he will order the police to conduct an investigation in the matter and she will be booked for perjury.

Regards 

socially,

You are advised to forget the matter and move ahead,

legally,

you can take a step and make a police complaint against her for false statement and damages caused to you, but as the litigation will take somewhere, around 6-8 years, and will completely vanish the relations,

better to act socially,  

Dear Sir,

Yes, you can file after filing B-report . B-report means the allegations made by the complainant are entirely false as such you can file both Civil and Criminal defamation cases as your reputation was lowered in the society.

No doubt she has given complaint against you people, it is the police who have to investigate the matter and proceed against you or not after investigation, hence you may not be able to initiate any direct action against her, however if B report is submitted, based on the police statement you may plan to take necessary legal action if there can be any.

Malicious prosecution will arise only if the police prosecuted the case, hence you better remain silent about it even in case the case is closed based on the B report.

Dont get into the stretched legal battles and get more tensed which may cause you more stress.