Brother, I understand that because she is your mother you might feel like you have to listen and go with everything she says. But when this is causing discord in your married life, and trespassing on the rights of your wife, it's your duty as her husband to stand up for her rights.
This has gone much further than most women would tolerate, and I'll say as delicately as possible your mother might be suffering from some form of illness which is causing such possessive and drastic behaviour, which would need to be addressed. Or maybe she has been through some things in life which is sparking this chronic need to cling on to you, out of fear of 'losing' you?
It is sad that in certain cultures there always seems to be this 'forced' competition between a mother and wife, as if they're mortal enemies that can never live happily together. Why? Their roles are so fundamentally different, yet equally important, there's no need for competition. To divorce your wife or send her back to her parent's home when she has done nothing would be an injustice to her.
As Umm Layth has said, when some people are living together, disagreements and arguments happen. A husband and wife will argue. Siblings can argue (I do have occasional arguments with my sister) but a family is about accepting each other's difference, being flexible and compromising for one another, and if not that then for the sake of Allah swt. When this stops happening the family becomes dysfunctional and begins to fall apart. You need to respectfully but firmly try to explain to your family that they need to be more flexible and live together in peace. If that fails, perhaps it would be best for you and your wife to move out, but be close enough you could visit your mother regularly if needed.
I'm sorry you're going through this akhi, inshaAllah I hope you can resolve the situation.