Police accuse the rebel group of abducting the relatives in an act of terrorism. The Arakan Army claims it was rescuing the relatives from a military bombing run.
The Arakan Army says the eight men it recently abducted in southern Chin State were posing as company employees to gather intelligence on the armed group's activities.
The monument, to Col. Ba Htoo, was torn down to widen the Asian Highway. The state wants to relocate the urn holding his ashes, but work crews have yet to find it.