Murlidhar,
If your wife is of such behaviour then no point of making her understand your feeling. Even if you convince her today to stay with you, The dominating nature (which has been pampered through out her age till date) would jump back again after some years (at that point of time, you and your parents & you kid might have got older and you might be having another child).
It would be good to fight sooner than later.
I am also a victim of false 498a, Dowry prohibition act, 323, Crpc 125 etc since five months and has a daughter (3 years) with my wife. Now after five months inlaws they are demanding money to be deposited on my wife's name to settle the mater and to send my wife back. They are saying that until you don't diposite th money, we would continue the cases on you, would neighter give divorce not let my wife come to me.
Initially the pain would be immence as the person to whom you loved so much and have had shared everything good in your life is doing this to you but beleave me later on (if you don't give up) - all these pain would become your strenth and would make you a strong person.
YOU WILL LEARN TO THINK & LIVE WITHOUT ANY IMOTIONS. FORGET THAT YOU EVER HAVE GOT MARRIED AND HAVE ANY CHILD.
Please follow below steps.
1) This un-emotionally and just don't think about your wife and child (I know its difficult but you will have to learn that).
2) Tell local police officials about a potential false cases against you and the threats.
3) Higher a faithful and good lawyer, discuss the issue openly with him and ask him to keep an eye on any such false cases against you and your family. He would get the Anticipatory bail for you in even of an adverse situation.
4) Send a couple of letter to your wife stating to come back by register AD.
5) Send some money to her (which you even might have spent on her if she would have been with you) throgh cheque.
6) I personally would suggest don't go for RCR or divorce case and let her start the litigation upon which she would be punished throughout rest of her life.
7) Its easy to start the litigation by a woman as the law and government favours them on a short run but on a longer run they are the one who would loose emensly.
8) Find a good girlfriend (if you can and if you have decided not to bring your wife back again).
9) Believe me, after some years your in-laws themselves will give you your child back as they can't afford a daughter with a child living in their house.
10) Record all the telephonic conversation and motivate them to speak their mind (like get separated from your parents and if they have any demands for money).
11) get separated from you parents (legally).
Be ready to suffer emmense mental disturbance thanks to these biased laws but keep in mind that "we all are the first few drops of rain who would have to get evaporated to get a change"
Never give up to her illegitimate demands because if you do it once, you and your family would have to do throughout your life.
All the best.