Two wooden caskets containing hundreds of bone fragments were laid to rest according to Jewish customs in a ceremony attended by Christian clergy and government officials.
The remains were found during the renovation of Margit Bridge, which is located in an area in downtown Budapest where an estimated 3,600 mostly Hungarian Jews were executed by henchmen and allies of Hungary's Arrow Cross, a pro-Nazi group which governed Hungary for a few months from late 1944.
Today's burial took place on the eve of Hungary's Holocaust memorial day, which commemorates when Jews began to be placed in ghettos and camps ahead of their deportation to Nazi death camps.
Over 420,000 Hungarian Jews were deported in less than 10 weeks and some 550,000 Hungarian Jews perished in the Holocaust.
Andras Heisler, president of the Federation of Hungarian Jewish Communities, said the burial was "the first and only case in 70 years" of bones believed to be of Hungarian Holocaust victims being found and buried.
DNA testing found many bones had markers characteristic of Ashkenazi Jews.
Rabbi Baruch Oberlander said there were no religious objections to the Jewish burial even if it could not be fully ascertained that all the remains were from Jews. According to Jewish law, based on a biblical dictum, when the identity of someone to be buried is unknown, it should be decided based on the majority population.
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