A public hearing on the construction of a railway goods shed near Chennimalai in Erode district caused a commotion when the villagers and local MLA S Jayakumar objected to the plan to acquire land from public for the project. On behalf of the Railway Department, it is planned to establish a goods shed under private project "Kathi Sakthi Multi Model Cargo Terminal" at Chennimalai.
Regarding this, a GO 91 was issued on Sept 19, 2022 to acquire 12.79 acre dry land as per the suggestions commissioner of land administration and proposal of the collector at Paniyampalli and Vaipadi panchayats in the Chennimalai Union. In this regard, a consultation meeting was held under the chairmanship of Perundurai tahsildar Sivasankar at the Perundurai taluk office.
The meeting was attended by RDO Satish Kumar, Southern Railway Salem Divisional Engineer (West) Bhupathi Raja and Perundurai MLA S Jayakumar. But the land owners opposed the project and refused to give their lands. The MLA said already the locals have offered over 2000 acre for Perundurai Sipcot project and also for railway project in the area. So, seeking more land from them is not acceptable, he said. Similarly, many opposed the land acquisition plan in the name of industrial development project.