docker-compose: "Error processing tar file(exit status 1): permission denied" in CentOS 7

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I just cloned a git project to my CentOS 7 VPS. The project contains docker-compose.yml file and I am trying to run docker-compose up.

The command is exiting with this single error message

ERROR: Error processing tar file(exit status 1): permission denied

I have run the same project successfully on my local machine. I am using docker-compose version 1.15.0 and Docker version 17.06.0-ce.

Can't figure out why this is happening. Could anybody please help?

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