Answer
(Fatwa: 742/268/TL=1432)
Mahram was defined in the books of Fiqh as a person with whom nikah is haram due to kinship, suckling or relations created by marriage:
والمحرم: من لا یجوز لہ مناکحتھا علی التابید بقرابۃ أو رضاع أو صھریۃ (شامی 3:464)
This definition does not apply to brother in law (bahnoi); since the brother in law can marry his sister in law (sali) after giving talaq to his wife or after death of his wife. Therefore, a brother in law is not mahram for his sister in law and she has to observe purdah with him.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband