My children were mistreated by my sister-in-law!

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When I was working, I sent my children to my mother house and fetched them after work. My sister-in-law was staying with my mother with her two children, about the same age as my kids (8 and 10). One day, my sons refused to go to my mother house. When I asked why then they started to tell me about my sister-in-law treating them badly. She let sleep with no mattress. Took their toys so that her children can play with it. Accused them of stealing food from her children. She even threathened to beat them if they told me what happen. My mother did not know about this because she pretended to be nice to them when my mother was around. I was really shocked because when I was with her, she acted as if everything was ok. At first, I did not confront her but as I really see the fear in my children, I confronted her about it. Guess what, we had a huge arguement and ends up she moved out from the my mother's house. It was a relief but I am still wondering whether I did the right thing? Do you think there is a better way to solve the problem?