Hitesh:
Please check your stock status for the same material and see if you have any blocked stock in the st loc. I've to say that I am a little confused by your statement "and return stock was placed in blocked stock ( sto Loc 0001) and for return stoc loc is 0099".....
653 is posting the stock into unrestricted, if you have unrestricted stock in that specific St. Loc that you GRed into, then you should be able to reverse the GR.
If the stock has been moved after your GR, then cancel whatever material document that moved that material. It might have been consumed..