Warning of an indefinite closure of the local bazaar, they have also demanded the local administration to maintain law and order in the local bazaar and probe the incident independently.
The group had set on fire a motorcycle of Sher Bahadur Chad that was parked in front of Chandra Shoes shop in the district headquarters.
All the long and short-distance bus services did not operate on Tuesday due to the protest.
Chad said that Maoists allegedly set his two-wheeler on fire as he had an altercation with the latter on Monday afternoon in course of a tender bidding.
Local Maoist leader Padam Raj Joshi has denied any involvement of Maoist cadres in the incident.
Locals demand their land back from army