Problem
It is not possible to chmod files from a FTP client. FTP server is ProFTPd.
Analysis
Check your /etc/proftpd.conf file. It probably contains a line section like this:
# Bar use of SITE CHMOD by default <Limit SITE_CHMOD> DenyAll </Limit>
Solution
Remove (or comment out) the above shown Limit section from /etc/proftpd.org. Restart proftpd.
# service proftpd restart
proftpd: Could not chmod files