ORDER Rejected with reason - 16260 : record is there in master file but delete flag is set

I tried to place an order with your API and got an error. Here are the steps I followed and the resulting error:

1. Got request token using the following url : https://kite.trade/connect/login?api_key=xxx
2. Got access token using the request token, API Key and secret
3. Now with the access token, I'm able to get the equity fund balances. ( just to confirm access token is working )

4. When I try to place an order with the following snippet , the order is placed successfully:

// node.js code

var orderOptions = {
tradingsymbol : "NEOCORP",
exchange : "NSE",
transaction_type : "BUY",
order_type : "MARKET",
quantity : "1",
product : "MIS",
};

kc.orderPlace( orderOptions )
.then( function(response){
console.log( response );
})
.catch( function(err){
console.log("Error while placing order : " + err );
});

5. I get a popup notification on my zerodha account confirming the order is placed. But the status of order is "rejected" with the following reason:

16260 : record is there in master file but delete flag is set


Few other things I tried changing:
a. changed product type from "MIS" to "CNC".
b. changed order type from "MARKET" to "LIMIT"

Can you let me know what could be the possible reason for this. Am I doing something incorrectly here?