I have a special guardianship order for my nephew. When all the court proceeding started my sister was in a bad place. She is an alcoholic. Since last November she has not drink and she is in secure employment also she got married. For the past 6 months I extended her contacts from 2-3 hrs a week to weekends when she has her son in her home. My sister started legal proceedings to change special guardianship order. I want to know if I let him stay with her permanently would I be penalise for it?

Depends on the circumstances and terms of the guardianship order. If she has started legal proceedings and you will not be objecting to her regaining custody, the legal proceedings shouldn't take long. So why risk running afoul of the order?

She really should not take him back until its gone through court. Then they can request that there is an adjustment period until she is given full custody back. Like Scott said she shouldn't jeopardize things by jumping the gun.