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Hi,I'm Zoey and I'll be assisting you. I'm reviewing your question now. What's your question with regard to this?
This doesn't seem like a legal problem as much as a marital dispute. Your wife doesn't want you to take action against your grandson. You think she's wrong. I'm not sure how I could advise here.
You could certainly report the theft to the police and ask that he be prosecuted, even without the grandma. He would be given a restraining order keeping him away from you and your residence and if his rental unit is in the same building where you live, he would likely be required to move out. If you didn't want to prosecute, or if you did but the court didn't require him to move out as part of the restraining order, you could also serve him with notice to quit the premises and if he doesn't, you can go to court and evict him. Then he wouldn't be a problem any more. The only problem you'd have would be the grandma, who I'm sure will be very unhappy.
If you didn't want to arrest him, you would have to evict him and then if he came back, you could get a civil restraining order keeping him away from you and your properties.
As for what I'd do, if I felt strongly that he should be punished, I'd report him to the police and ask that charges be pressed and for a criminal protective order that would keep him away from my properties. But that's easy for me to say. I'm not living with the grandma.
Just checking in to see if you need more help or any clarification of my answer. If so, please reply here on this question thread.