Apache 2.4.1 configuration

I am facing a unique issue. I have setup Apache 2.4.1 and below are my configuration:

    ServerRoot "prakash_prasad/bin"
    AddHandler cgi-script .py
    ScriptAlias /~prakash_prasad/ "/x/home/prakash_prasad/public_html/"
    ScriptAlias /test/ "/x/test/prakash_prasad/public_html/"
    DocumentRoot "/mybox/prakash_prasad/bin/htdocs"

    <Directory "/x/test/prakash_prasad/public_html/">
    Options ExecCGI
    #SetHandler cgi-script
    #AddHandler cgi-script .py
    #Allow from all
    Require all granted
    </Directory>

Code (markup):

Now I have a sample 'first.py' program dumping "Hello World!" which works fine when I enter the below url in the browser

http://<server>:ip/test/first.py

HTML:

But when I try to load an HTML page:

http://<server>:ip/test/index.html

HTML:

I get below error in browser:

Internal Server Error

The server encountered an internal error or misconfiguration and was unable to complete your request.

Please contact the server administrator at you@example.com to inform them of the time this error occurred, and the actions you performed just before this error.

More information about this error may be available in the server error log.

while in LOGS I see:

    [Thu May 17 23:07:10.664648 2012] [cgid:error] [pid 10386:tid 47977877412864] (13)Permission denied: AH01241: exec of '/x/test/prakash_prasad/public_html/index.html' failed
    [Thu May 17 23:07:10.665034 2012] [cgid:error] [pid 9849:tid 1232931136] [client 10.239.40.209:54712] End of script output before headers: index.html

Code (markup):

Please let me know what config I need to correct?

 

::UPDATES::

I narrowed to a point but not sure the issue could be that:

When I comment the cgid module solved the issue for me:

# LoadModule cgid_module modules/mod_cgid.so

My HTML page comes fine but not my Python script

While I uncomment it

LoadModule cgid_module modules/mod_cgid.so

My script works fine but HTML files give error.

Any idea what could the issue be?