Gadhalenga UP chairman Mein Rok Mro said the family had a long-pending dispute over the land in question with some people in the area.
During the arbitral proceedings on Thursday, some agitated people hacked the five family members to death.
Bandarban police super Jerin Akhter said that the area is 60 kms away from the town. “A team of police has been sent to recover the bodies. Action will be taken after an investigation,” she said.