I figured what the problem was. Although this was not an issue on the development box nor my bluehost account.
The above mention htaccess code is at a sub directory "japi" and its parent directory contains the wordpress installation. The htaccess of wordpress was causing a issue.
The
RewriteBase /
needed to be set in the sub folder as well
RewriteBase /japi
not sure why this worked on my development box or the bluehost box. Maybe the htaccess rules were not being inherited.