Divorce filling with huge compensation

Duration of marriage : 1yr I am earning 50k and wife earning 15k. I stay with my mother who is a widower. Since 2 months after my marriage last year, wife has been accusing and calling my mother names even to the extent of 'Kept'. We both have regular arguments and things were getting hostile as her parents were interfering in every activity including my bedroom stories being circulated across my relatives, friends. I was accused of impotency and medically unfit, which ultimately I had proved negative through proper medical tests. I had taken my wife to the doctors and discussed the medical report which was void of any anomaly. Her parents visited our home and accused of domestic violence and agony for her. They started defaming and constant threats over this issues and asking for making my life in society treacherous. She even contemplated my past relationship and digging them with question and accusing now with adultery. She went back to her home and since been there from April, 2016. I was warned and threatened with all possible cases framed against me a through a lawyer to get this resolved amongst ourselves through heavy compensation of 20L to which I refused. Now after 4 months they have hired another advocate and put me through same terms and asking for settlement but with this amount. How can i fight against this and get me over this predicament. Her advocate has stated that they would file 4-5 charges against me: 498 for initial harassment by producing me before local police station, then mental agony, one time settlement amount as well as monthly maintenance.