Given the law in favor of woman, it is better negotiate the amount and divorce her once for all. Start a new life, you lost precious time. Law is in her favor, she can file cases against you and family members. That will be waste of time, money and peace of mind.

You are at liberty to file FIR for extortion against your wife under section 385 of IPC 

• You can file a case against her cheating and misrepresenting about resettlement and start a family although she wanted to gain money and then flew away. You can prove her bad intention, while coming back to matrimonial house after 7 years .
• You can file a FIR  for extortion if she had threaten you and your family for money and jewelry but you can file a case under Section 378 of IPC relating to theft  and dishonestly taking away jewelry without your consent.
• You can also sue her for fraudulently getting access to your bank vault under section 415 of IPC.
• You can also refer your old case where she unable to proof so as she couldn't ask for this quantum of alimony for divorce. 

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The demand fort settlement of matrimonial issue cannot be termed as extortion.

You can refuse to give the demanded money and can challenge her demands or the matrimonial case properly in the  court of law 

The proposed complaint for extortion my not be maintainable.

You should have done this a long time ago. File a divorce case on grounds of adultery and cruelty.

Extortion is slightly different and the facts narrated by you might not straight away comes under the purview of Extortion.

its better if you could file a petition for divorce on the ground of cruelty with the above mentioned grounds. 

Demand for alimony howsoever exorbitant it may be is not extortion. 

However a case of theft can be filed if she has stolen any of your valuables.

Else contest the case on merit. 

Hi, Filling Criminal Complaint against her will not help you. It is better you can file a Petition for divorce on the ground of Cruelty.

- No, police cannot lodge FIR for extortion of money , but you can file a compliant for stealing/taking the jeweler items without your consent . 

- Further , if you having proof of her extra marital affairs , then you can file a divorce petition on this ground. 

- Further if she having relation with her boy friend , then she is not entitled to get maintenance from you. 

you can file  an FIR for theft of  the jewelry which does not belong to her but not for asking alimony/demanding money during  divorce.

Her demand of 20 lac will be treated as demand of alimony as you seek divorce, but will not be counted as offence.

you should file petition for divorce, if she is not agreeing to it without alimony.

1. Claiming Rs.20 lakhs as alimony may not be considered as an act of extortion as per law.

2. You can certainly lodge a police complaint against her but the police will register the said complaint as FIR only after a prima facie evidence in support of your complaint is found.

Yes you can do the same if you have evidence