Created System DSN not picked by application .exe to connect to Oracle DB

Created System DSN not picked by application .exe to connect to Oracle DB

ENV: Windows 7, Microsoft Odbc for Oracle, Oracle client 11.2, 32 bit exe
I have a 32 bit .net exe (on a win 7 machine) which runs and writes data
to an oracle db. For this application to access the DB I have created a
ODBC source (Microsoft ODBC for Oracle) under System DSN of odbcad32.exe
from c:\windows\syswow64.
Instead of picking the SYSTEM DSN source the application is picking some
default connection source for the user. Please see below. (from
sqlnet.ORA) Fatal NI connect error 12560, connecting to:
(DESCRIPTION=(ADDRESS=(PROTOCOL=BEQ)(PROGRAM=oracle)(ARGV0=oracleORCL)(ARGS='(DESCRIPTION=(LOCAL=YES)(ADDRESS=(PROTOCOL=beq)))'))(CONNECT_DATA=(SID=ORCL)(CID=(PROGRAM=D:\Projects\abc\Web\dll\reader.exe)(HOST=abc-43DGMX1)(USER=NGolia))))
The application (exe) is obviously not able to connect to the correct DB
and throws a ERROR SQLConnect() Failed.
Could anyone help let me know what could be missing? Am I missing any
environment variables