Hello pramodh,
Could you, please, specify in which browser do you experience this issue?
Please, let me know if you can reproduce it on this example and provide me with a step-by-step procedure (so I can reproduce it at my end too):
http://demos.telerik.com/aspnet-ajax/treeview/examples/functionality/draganddropnodes/defaultcs.aspx
Regards,
Nikolay Tsenkov
the Telerik team