This one is iffy.

First of all, why, among all places, do the family want to bury the deceased in Pashupati area? Maybe that was the deceased wish, maybe that's what their priest says; so we are talking about sentiments here. Then shouldn't we respect the sentiments of the Pashupati chhetra?

But then again shouldn't we curb any religious practice that fosters discrimination by creed, race, religion etc?

Religion is one confusing but strong mystery.