Adulterous wife not willing to settle case

Hi, I am based in Mumbai. I am a teetotaler and lead a very simple lifestyle, with a strong belief in family values. I married at 35 (first marriage!) through an arranged alliance in July 2013. Despite requests and nudging from family members, I never bothered to check the lady's b/ground not family, IN COMPLETE and GOOD FAITH. We did NOT take a single penny dowry. I worked with an MNC and was earning sufficient money to take care of my family, comprising my mom, wife and myself. Within the 1st month itself, I had some inkling that she was hiding something. I tried to reason with her to no avail. 6 months later I discovered through an email that the lady had been married and divorced once earlier, and while undergoing a divorce also fell to the charm of her brother-in-law! To sum it up, 1 divorce and 1 fling before she tied the knot with me. It came as a culture shock to me. We stayed separately for about 3 months. However, I resigned to fate, and with all the LOVE I had for her, AND with faith in goodness and humanity, decided to call her back, assuming that things would work out. However, trust lost once can't be regained. Despite trying hard to make things work, I realized that it wasn't possible to regain and mend the fences! Hence, I asked her to stay put at her parents, and we never met or spoke again after December 2014. After a cool-down period of 1 year, this year in January 2016, we called her family to settle the case mutually minus allegations since I have sisters at Home, and we don't believe in mud-slinging. They agreed initially, but backtracked later which, according to me, seems to be an act of vendetta. I lost a stable job, contracted sciatica and was in emotional distress! My family, nor I deserve this! Honestly, looking at things around, I don't have a lot of faith in the Indian justice system that takes ages to settle and is biased as far as women are concerned. I hail from a very respected and value-driven family, and hence I am not willing to engage in any kind of mud-slinging in a packed courtroom, although I have enough evidence to prove her guilt. Could you please advise? Thank you.