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Hi Gururaj,
It sounds like the part is being pulled into UVLO when it tries to turn on. The charge pump capacitor may be too small, the charge pump overloaded, or the loss may be high during DSG turn on. See the application note http://www.ti.com/lit/pdf/slua794
You might debug with the BQ78350 FET test commands to see if the problem occurs with CHG or DSG.