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I bought RE shares (renouncee and hold rights entitlement) and holding in my demat account. when i'm trying to apply RE issue in "https://rights.kfintech.com/mahindra/apply/apply2.aspx?q=81zBoVcnxOtSDXcqfmHcMauA4J4YOr5pAm6aRITSWhg3AYYQVezefw%3d%3d" error is getting and saying that "Not a Renouncee - Select Shareholder On Record Date". Did anyone facing this issue and how to overcome this ?

You should apply with netbanking asba. https://rights.kfintech.com/ site has static data as on 22.07.2020. Since you have purchased RE shares after 22 Jul, your DP account details will not be available in https://rights.kfintech.com/ database. So apply through asba.