Mergemodule is not upgrading While Minor Upgrade

Hello,

I have a Basic MSI Installer which carries a merge module Jre. In previous release Merge Module JRE version was 1.7.0.55 and in next release JRE version is 1.8.0.11.
I have created this Merge module using Dynamic linking in Component.
In Previous release Dynamic linking was done through path abc/Jre1.7.0_55 (include all subfolders) and Destination path Installdir/Jre1.7.0_55
In next release Dynamic linking was done through path abc/Jre1.8.0_11 (include all subfolders) and Destination path Installdir/Jre1.8.0_11
Only folder name of Jre is changed.

Now in Minor Upgrade of Basic Msi, I expect that It should remove Previous Merge module Jre folder (Jre1.7.0_55) and should install new Merge module Jre1.8.0_11.
But this is not working while Fresh installation of this Basic Msi installer is working fine.
Please assist me how to make this run!!

-Gunjan