Here is my actual problem:
Current behavior:
In current scenario, move operation fails to update the references of the asset because the service user used by AEM internally to perform move operation(reference-adjustment-service), does not have modify permissions on /etc/xyz
Solution:
By giving modify permission to "reference-adjustment-service" user at /etc/xyz, the move operation successfully updates all the references.
This solution works, except for the fact that the dam:relativePath property is not created on moving the asset.