Raunak.
I cleared the I.E. cache before your tests. The BI launchpad link was already configured correctly in the Local Intranet site on all tested client machines with all versions of I.E.
I tested on the Launchpad server, with AD authentication, and got the exact same error using Localhost:8080/BOE/BI. (Enterprise authentication works fine inside I.E. on the server + and Chrome AD authentication works fine on the server.)
The error is repeated in I.E. only:
Account information not recognized: Could not reach CMS 'server:8080'. Specify the correct host and port and check for network issues. (FWM 20030)