Hi Manoj
I was able to reproduce the image corruption. (I was not setting TILE_EN in my previous test). Actually it happens for other formats too (not only 2bpp).
I contacted Design team and they replied to me that this feature (negative Ypos in TileMode) by design is not implemented in Hardware.
It was decided that it should be implemented by the application via software. Only Tile layer XPOS in negative direction is supported by Hardware.
It is a mistake that this is not mentioned in RM.
This will be corrected in following Vybrid RM revisions.
So, in your application you need to take care of this, checking the YPOS in a TileLayer, if the value is negative then reduce the Vertical Layer size.