Should a teen who has stolen from a relative be banned from their home forever?

This particular teenager stole some video games that were loaned to him by his younger cousin . His aunt, the loaner’s mother, found out and they have banned him from their home forever. (I was asked to get them back from him and he complied willingly). Now he can’t see his cousins, 10 and 12 who he says he loves. He doesn’t know yet about being banned and , surprisingly, is the sensitive type (shows emotion, loves animals, etc) . I don’t know how he will react when he finds out but is it deserved? Or are they too hard nosed? They know all about his dreadful upbringing and had always been loving and generous towards him until this latest fiasco.