Eviction of mother in law

Dear messre I am married to a wonderful person for the past 12 years, he is a only child for my mother in law who is a single mother. I am the only child to my mother and she is a single mother as well. As ours is a love marriage we stayed separately in a nearby town of kanchipuram like 100kms from where our parents stay. When I got pregnant my mother moved in with me. Thats when all the problems started. My mother in law emotionally blackmailed her son and wanted to construct a house at our expense in a land she owned. My mother was ready to spare the money but on one condition that the land is to be transferred to my husband's name. My mother in law agreed and transferred. My mother spent for the entire construction of the house. Once when we shifted to the same house, my mother in law wanted to get rid of my mother which we did not agree. My mother in law threatened that she will file a case saying that we cheated her for the land. So fearing further issues my husband transferred the ownership of the House to me and my son. I have a second baby who is 9 months old, problems with mil became intense once when she is born. She felt totally insecured, hence i started to pay rs.10000 for the past four months. But now she wants a settlement from us for rs.25 lakhs. She claims that she has given money to us but it is not the case. We are ready to buy her a separate house for the same price but either in my name or in my husband's name through a loan as we do not have so much money. She mediated through a lawyer and we agreed to buy her a house on loan. But she wants it as a cash settlement. Please clarify whether if she can go to court for that and whether if she can reclaim the property i.e. the land in which we built the house that is currently under the ownership of me and my elder son. She's threatening us saying that she will go to collector to make the transfer of ownership void. What can I do in this regard as the verbal abuse is increasingly become more and more everyday even towards my kids. I have proof of all the expenditure towards the house from my mum's account and one recording of how she spoke ill of my mother to my husband. Can i do something like evicting her from the house and make her stay away (we are ready to buy her a separate house).Can we do something legally about this. P.s. she is a pensioner and receiving two pensions i.e. own and her husband's. My mother is also a pensioner receiving Hers and my father's.