At last, found the solution by someway.
Copy the "telnet.exe" file from C:\Windows\System32 folder to C:\Windows\SysWOW64
Post this operation, telnet prompt got opened while it executed via 32 bit JRE even though telnet client is specific to operation system. i.e 64 bit.
String command = "cmd /c start cmd.exe /K \"telnet <ip-address> \"";
Runtime.getRuntime().exec(command);
Ref :
http://en.wikipedia.org/wiki/WoW64