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I am based in India.I will be travelling to France & Spain for holidays with my wife on 3rd Apr 2017. So i have applied for Schengen Visa and expected to get it by 25th March i.e around 8-9 days prior to my travel dates.

Main issue:

We are returning back from Madrid to India on 15th April & my flight from Madrid is having layover in London for 1 hr 50 minutes. After that i have flight from London to Mumbai (British airways)

In such cases while returning back to our country , do we still need UK TRANSIT VISA even for 2 hrs layover at London... Please guide me.

PS: I do hold Valid US visa & my wife doesnt hold it.

Thanks in advance

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In short, because you have a valid US visa, you do not need a DATV, while your wife does need one.

See Is there a way to find out if I need a transit visa for a layover in the UK? for more details

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