In our lab we need to run telnet using root. Well in real environment its not good idea but for lab purpose we wanted it. Even though we enabled Telnet server and on local PC the telnet was working, remotely it was not allowing. After some online "googling" the issue got resolved by commenting following line in remote file:
open : vi /etc/pam.d/remote
comment
#auth required pam_securetty.so
open : vi /etc/pam.d/remote
comment
#auth required pam_securetty.so