All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
Saying Salaam is a Sunnah (recommended act), whereas replying to it is obligatory as previously clarified in Fatwa 90969. It is permissible for the Muslim to reply to the Salaam said to him by a non-Muslim, let alone a disobedient Muslim. Replying to the Salaam of a non-Muslim should be only with the word "Wa ‘Alaykum" (and upon you) no more. Some scholars held the opinion that replying to the non-Muslim’s Salaam may be with "Wa ‘Alaykum Assalaam" if the Muslim knew that he said Salaam in the same formula.
As regards replying to the Salaam of the disobedient Muslim, it should be with the same formula or a better one. Indeed, asking Allaah to grant him peace, mercy and blessing may be a cause for his safety from sins, and him entering by the mercy and blessing of Allaah among the believers by repenting to Allaah The Almighty.
It is permissible to desert a Muslim because of his misdeeds, as the Prophet, sallallaahu ‘alayhi wa sallam, deserted Ka‘b ibn Maalik and his two companions . Deserting a disobedient Muslim may include declining to reply to his Salaam until he quits his misdeed and announces his repentance. This should be done so long as deserting will not result in a considerable evil. Otherwise, it would be more appropriate not to desert him. For further information see Fatwa 84976.
Allaah Knows best.