was able to fix this issue by adding allow encoded slashes directive in apache httpd.conf file.Nothing to do with AEM. 

Hi, I am having issue with both the authoring and publishing instance while serving content, i have a product page for which i am passing in the material id the material id has forward slash in it ,so the request goes in as/content/product/MD102LL%2FAbut sling is resolving it to /content/product/MD1...