Thanks Brett for your inputs.

You are right the both TC webserver and Build Agent were configured by
default to run as local system account.

I changed them to run with my user and also removed the <localRepository>
tag from <maven installation>/conf/settings.xml. After the restart
everything works fine as now the my local repository (C:\Documents and
Settings\<username>\.m2\repository) is being by TC.

Thanks again.
Rakesh Nagar
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