1.Yes, the family of "deceased brother" are entitled to inherit "deceased" inheritence.
2. The personal law to which the deceased person subscribed applies to matters of inheritance in India.
3. After the death of a person his property devolves into following ways;
a. According to the respective law of succession, when no will is made- i.e.intestate
b. By way of will i.e. testamentary
4. Also one need to know the Law of Succession in such matters;
a. The laws of inheritance are diverse and complicated. The rules of distribution of property in case a person dies without making a "will" are defined by every Law of succession. These rules provide for a class of persons and percentage of property that will be inherited by such persons.
b. When a male dies unexpectedly or where there has been a tragic demise and there is no will, it often creates problems for the legal heirs and successors. This can result in unintended injustice. The property passes to the minor children, the surviving wife and to the mother of the deceased (although not on good terms) in equal shares. If there is an office or house, an equal share will go to the mother. Shares of companies are also divided equally. It is difficult to get all the heirs on a common meeting ground to write to the companies to transfer the shares to the names of the respective heirs. But all these problems can be obviated if a will is left behind.
Since under Law of Succession the role of "personal relationship" of deceased with his parents has no place so to speak in my views "deceased brother" family can claim rights to "deseased" inheritence and/or to deceased self acquired property.
I may be subjected to correction on above advice by ld. members.