Tamil Nadu State government through its executing agency Tamil Nadu Industrial Development Corporation (TIDCO) planned to establish a Special Economic Zone (SEZ) near Hosur, in Krishnagriri district of Tamil Nadu. TIDCO had obtained `in-principle' approval from the Ministry of Commerce and Industry, Government of India for establishing this SEZ. In 2006 the estimated cost of the proposed SEZ was about Rs. 512 crore. PricewaterHouseCoopers a global consultancy firm had conducted feasibility study of the SEZ in 2005. The district administration had also sent a proposal to the TN Government to get the administrative sanction for the project. Initially, the district administration had identified 1,053 hectares of land in the following villages; Bairamangalam, Kundumanapalli in Denkanikottai taluk and Achettipalli, Onnalvadi and Senamoa villages in Hosur taluk. .
In September 2006, thousands of farmers from the nearby villages in of the proposed site protested against the SEZ at Bairamangalam. The local Member of Legislative Assembly (MLA) and Village Heads (panchayat president) leaded the movement. According to the protesters, the revenue officials have shown these lands as unproductive dry land. However, the proposed site is highly fertile and cultivable land. The villagers solely depend on agriculture and they do not have any other means of earnings. So, they are not willing to give up their land. They proposed the government to acquire another site, instead of taking possession of agricultural land. They suggested the government can acquire about 7,500 acres of “poromboke land” (government land), which was located nearby for setting up SEZ .