Sugar Labels Not showing after copied from GIT (On Demand to my Local Development)

After installing the on demand sugar copy of CRM from Git, Most of the module lables are not showing up.

No labels displayed

After research we found that, The Language files that are supposed to be generate in “cache/api/metadata” are empty. Files are following:

these files are empty

That means, Sugar is building an array of language files and when json encode is performed, there is a error which makes the created JSON file empty. So when this file is loaded, there not any Labels as it is empty.

Does any body have a solution for this? Please help