Police said the people and some activists, who allegedly belonged to a political party, had blocked road and disrupted traffic following the reported leak in a pipe.
They also prevented the ONGC officials who had rushed to the spot to inspect and plug the leak, leading to tension, police said.
They also entered into heated exchanges with police and ONGC officials over the leak and scuffled with police personnel, police said.
Several persons, including two policemen, were injured in the violence and baton charging, police said.
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Some unidentified persons burnt garbage near the spot where the ONGC pipe was reportedly leaking but police rushed to the spot and doused it.
District collector Annadurai said water sources would not be affected due to the leak and people need not have any apprehensions about it.
The situation at Kathiramangalam has returned to normal, police said.
ONGC officials were not immediately available for comment.