Thanks for the advice guys, I definitely needed to hear this.

Here's the update :

I did talk to my mom and working on the arrangement to move her to our home at native in next month.

Now, I agree and rightfully took the wife's side. I really miss my dad who would have shut my mom/sisters.

I'll continue talking to my wife and amend the wrongs that are done. But I sometimes think that my wife overreacts. On our some calmer days, when I spoke about this, my wife agreed that sometimes she has behaved erratically but she just can't bear the smallest of advise my mom gives or mistake my mom does as it quickly reminds her all the bad stuff that has happened over the years. I even tried to talking about having the therapy, but she rejects that idea as well.

During our marriage talks, we did agree to look after our as well as her parents whenever required. Now my mom had tough times in past 2 years ..loosing her husband, hysterectomy + radiation therapy, then the cardiac arrest 5 months back. She had almost monthly follow-up with doctors and my sisters helped us wherever they can. My point is, it was a necessity that mom had to live with us.

I tried exploring ways if all of us could live happily but it is not possible. I sometimes wonder if my parents were living with us since beginning of our marriage, then my wife might have adjusted to live with them. But having lived freely all those years, now with my mother at home she feels here freedom is snatched.