 The filesystem rpm also has issues on the raspi2 .. it fails to install
 either while creating the image OR afterwards .. and a weird symlink
 happens in / that looks like this:

 lib;0001e142 -> usr/lib

 Here is the error:

 Error unpacking rpm package filesystem-3.2-18.el7.armv7hl
 error: unpacking of archive failed on file /lib: cpio: rename
   Verifying  : filesystem-3.2-18.el7.armv7hl

 But that also works on cubietruck.

 These issues could be related as filesystem is just a bunch of
 directories so something is happening with symlinking or renaming of
 directories.

Found the problem. In case of a custom kernel (Rpi2 and Odroid C1) the
kernel modules were being copied before installing packages. The
kernel
modules go in /lib. I guess that is what was causing the
problem. /lib being present before installing the filesystem rpm
I moved the installation of kernel after network config and tested
generation of images for Rpi2 and OdroidC1. No more errors! I uploaded
changes to the github repo.
However, I haven't tested the change thoroughly. Just generated the images once.

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