Dear Naren,
thank you for yours question here at Q&A portal. So, to remove a Recovery Services vault that's preventing deletion of your resource group. Ensure you have Owner or Contributor permissions. Verify no backup items are protected in the vault. Removal Process looks like as delete Protected Items First. Navigate to your vault > Backup Items
For each item (VMs, files, etc.): Select item > Stop Backup. Choose Delete Backup Data when prompted. Disable Soft Delete (If Enabled). Vault > Properties > Security Settings
Turn off Soft delete and save. Delete the Vault.
# PowerShell method
OR u can do next Azure Portal > Locate vault > Delete
Force Resource Group Deletion (If needed)
az group delete
bellow links to an official MSFT doc's accourding urs issue.
Best regards,
Alex
P.S. If my answer help to you, please Accept my answer