We managed to achieve a seamless failover of the implemented solution after Cisco Meraki TAC Engineer disabled auto summary a backend feature not available on dashboard which was causing the havoc. What the engineer said is that the two hubs perform auto summary , and the summary starts being preferred over the static route which is a bit weird and we could not get answer why the summary route has a better AD.
If you facing the same problem ,I recommend you open a TAC case and let them disable auto summary feature if you do not use it in your network.