Solution:
1. Disable the replication on the Primary Site
hdbnsutil -sr_disable --force
2. Reclaim the logsegments
Alter system SAVEPOINT;
Alter system RECLAIM LOG;
3. Enable the replication on the Primary Site.
hdbnsutil -sr_enable --name=<PrimarySiteName>
Notes:
For Reference, there are couple of Snotes that are helpful.
2416014 - Log Segments With 'RetainedFree' in the Former Secondary and Third Systems
2821539 - /HANA/LOG full with log segments in Retainedfree state