It is an act of mental abuse and it is prohibited under the protection of woman from domestic violence act. Domestic violence is a continuing offence. You can file a complaint under section 12 of the DV Act.
If domestic violence causes in a shared household it does not matter that who causes it. Husband, father or mother in law, sister in law or any other person living in the house may cause domestic violence.
The action of your sister in law squarely comes under the ambit of domestic violence. You can file a complaint against her. In the said complaint, you should seek residence order and protection order.
Residence order helps you to reside in the matrimonial home. In the other hand protection order restrains your sister in law to disturb in your abode.
File a complaint
You should file a complaint under section 12. Mention your relief in the said complaint. You can seek residence and protection order in the same complaint.
A matrimonial home is alike to the shared household. Hence, you can claim residence order for that house.
Get sister in law out of the house
This is not possible because your father in law is the owner of this house. You father in law has to decide how long his daughter live therein. So you cannot claim eviction of your sister in law from the house.
When the court passes residence order it will restrict the entry of your sister in law in that particular portion of the house. That relief will serve your purpose and it is enough for you.