After working on this for over two days now, finally I found a workaround. Though I doubt if it is a solution, but still it worked for me. So far I have been trying to configure the profile using the iPhone Configuration Utility on my MAC only. On checking the mobile config files, I found that the value corresponding to the key "PayloadUUID" is the same for all the profiles that I created using my MAC machine. Then I tried creating one profile from my MAC and the other from that of my colleague's, and it worked perfectly.
So we could possibly fix the above mentioned issue by configuring the profiles from different machines or by simply editing the profiles such that the "PayloadUUID" are different.
If anybody else finds a better solution, please do update.