Defamation case against father in law

I got married three months ago. The marriage was simple and we had not asked for any dowry and neither were we given anything. Still a week back, my father-in-law, his son with some goons came to my house and made a ruckus in the entire colony claiming that I hit their daughter and that I demand money from her. They shouted abuses to my father and me in front of everyone. I've filed a complaint regarding the same with the local PS. From what I gather is that my in-laws want to incriminate me and take money from me by trapping me in false claims. My father in law hasn't worked a day in his entire life and his son is involved in shady/illegal activities. My wife is with me and supports me. Since we have witnesses (no audio or videos, but real people), I want to ask if I can file a defamation case against him? What is the usual outcome of such cases and can I also claim money from him in this case? how much shall I claim? either I want him to go to jail or get financial damages.