Am I wrong to not press charges against my maid who stole 32gms of gold?

So my 32 gm chain went missing and next day me and my wife flipped the entire house to no avail. Our maid was there all along, though neither did she show any interest in searching fornit nor did she enquire if we found it after she left for her home. The next day we gave a police complaint after pressure from everyone (I was not so keen) and they said it could be the maid. The next day she cooks a story that she met an astrologer who said chain will come back to me in 3 days ( when I guessed she must have pawned it). We waited for 3 days and on 4th day police called her to the station. She confessed she took it and sold it. Police insisted I register a case which would put her behind bars. Somehow I couldn't do it and the thought of she or any of her family committing anything stupid made me breakdown. Everyone blamed me for not pressing charges. She told she'll at least try to pay back the amount, which no one believed. I told her it didn't matter anymore and let the case go. She comes back in the evening with near market value of the chain. I took it. Now, people are saying she might have done it in the past or she might repeat it in the future. I don't think she will. Did I do wrong in not pressing charges ?