Hi Sumeet,
Yes, the IP address will become expired after 7200 second (default) or configured lease-timer if the device is removed (It looks like DHCP client sends DHCP lease renewal every half of lease period by sending DHCP request message for the IP address).
When I did simple test in local lab, it looks like the output of "dhcp-address-allocation" just shows expired hosts without erasing them (I can see this output until now even though they were expired at 4 hours ago).
* HOON-SW2.12 # sh vlan "DHCPVLAN" dhcp-address-allocation
===============================================================================
IP MAC State Lease Time Left
===============================================================================
77.1.1.10 50:7b:9d:d5:8e:ce Expired 0000:00:00
77.1.1.11 28:d2:44:8a:8d:fa Expired 0000:00:00
Even though the IP addresses are shown as expired with previously assigned MAC address, when I connect new device, the IP address is assigned to the new device normally and immediately as below (Tested with just one DHCP address pool, 77.1.1.10) :
* HOON-SW2.4 # sh vlan "DHCPVLAN" dhcp-address-allocation
===============================================================================
IP MAC State Lease Time Left
===============================================================================
77.1.1.10 28:d2:44:8a:8d:fa Assigned 0000:00:07
* HOON-SW2.4 # sh vlan "DHCPVLAN" dhcp-address-allocation
===============================================================================
IP MAC State Lease Time Left
===============================================================================
77.1.1.10 28:d2:44:8a:8d:fa Assigned 0000:00:03
* HOON-SW2.4 # sh vlan "DHCPVLAN" dhcp-address-allocation
===============================================================================
IP MAC State Lease Time Left
===============================================================================
77.1.1.10 28:d2:44:8a:8d:fa Expired 0000:00:00
* HOON-SW2.6 # sh dhcp-server "DHCPVLAN"
VLAN "DHCPVLAN":
DHCP Address Range : 77.1.1.10->77.1.1.10
Netlogin Lease Timer : Not configured (Default = 10 seconds)
DHCP Lease Timer : 30 seconds
Default Gateway : 77.1.1.1
Primary DNS Server : 168.126.63.1
Ports DHCP Enabled : 7-8
===========================================================================
IP MAC State Lease Time Left
===========================================================================
77.1.1.10 50:7b:9d:d5:8e:ce Assigned 0000:00:29
So it looks like the EXOS just shows expired host list for the IP address and it does not mean the IP address is still assigned to the device.
Maybe this is to give same IP address to same device when it requests (renew or reconnect) dynamic IP address, before the cache is cleared.