Seperation from parents

No one can force you to live away from your parents.

But I suggest if this can save your marriage than there is no harm in doing so. 

Take the opportunity in disguise in this way; ask your wife / in-laws to make regular payments for rented flat near to your parents residence and take the offer of that rented flat in wife’s name (I mean registration etc.) and balance your visits to old parents home and quality night time with wife equally in your daily routine bze today she is only demanding separate residence and not said anything about you not spending time with your old parents at all - right !. So solve her first demand and when we come to the bridge we will cross over her next demand and so on so forth in similar fashion. Remember asking money for house rent is not dowry demand by a Son -in- Law, which even Hon'ble SC has said so. So law is with you only if you smartly use it to your advantage keeping emotions / sentiments apart from regular business of the House.

Now the moment you even say this before Mahila Sahhaya Kaksh and to your wife / FIL who will be also present there, the IO at Mahila Sahhaya Kaksh will also support you and close the complaint case as compromised between the parties. Never worry when such (un-reasonable) demands a abala metro wife raises. There is always Made in India bitter pill to offer as solution to her, use your brain not heart to rebut indirectly and adjust your male pride too on the go.

Also remember the first business of a metro wife is to alienate husband from his old parent then comes seeking your sperm  for child and then alienate the child from his own natural father that is you and finally cut off your both pockets via multiple maintenance laws (not pocket polo balls) and remain in eyes of society still a abala.......the moment you learn these step-by-step realities of metro India your visit here will become minimum otherwise hire an competent Advocate via reference and for the rest we are always here.

Neither can she force you to stay away nor can you force her to stay with her....

You got to talk it out....