Required suggestions

As you know LAW is gender biased , you can not take any action against a harrasing women.

You Can report to the police about her acts in advance not as a compliant but as a information, Please take videos as proof which would be required in future as evidence.

i think she is a psychopath , before taking any legal action against her you must visit to a psychiatrist and get his openion about the behaviour of your bhabhi why she is not behaving normally as a sound person behaves , mostly after getting proper treatment the patient get well and live a normal happy life and you will find total change in their behaviour , go for it .

Dear Friend,

Your Bhabhi's Acts comes under cruelty to the husband and is a criminal offence against her In-Laws too, any person who has knowledge of it can complaint for it with the police and on investigation by IO of police if it is found true a criminal case can be started against your Bhabhi in the court of Metropoliton Magistrate, on the other hand it is also a good ground for getting divorce from her if your Brother wants to get it.

Advised, always take assistance from an experienced and well educated Advocate of the field. You can see my credentials on site for my appraisal.

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Anand Bali, Adv.
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Supreme Court Of India
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any one from the family can give a formal letter in the police station about her behaviour and and explain about their parents also in the letter which is a evidence for you if in future if she takes any extream step in her life

and also consult a psychiatrist because if everything goes well you family can live happily with her and welcome the change and if not then you can gather the evidence and go legally against her.

do not initiate any litigation by urself.

as compared to the husbands' side, the wife has more lethal weapons.

once the litigation starts, u all will loose precious time and money in court.

try to sort out the matter amicably.

if such efforts fail, then let the Bhabhi start the litigation and u face the cases on merits.

if husbands' side goes to police, they will be ridiculed by the cops. dont go.