Fails to Compile (ng serve)

[pratikthecook]

Followed the following Steps
git clone
npm install
ng serve ==> THROWS

ERROR in ./src/main.ts
Module build failed: TypeError: Cannot read property 'newLine' of undefined
    at Object.getNewLineCharacter (/home/pratik/WebstormProjects/playground/playground/node_modules/typescript/lib/typescript.js:9618:20)
    at Object.createCompilerHost (/home/pratik/WebstormProjects/playground/playground/node_modules/typescript/lib/typescript.js:66867:26)
    at Object.ngcLoader (/home/pratik/WebstormProjects/playground/playground/node_modules/@ngtools/webpack/src/loader.js:397:33)
 @ multi webpack-dev-server/client?http://localhost:4201 ./src/main.ts

ERROR in ./src/polyfills.ts
Module build failed: TypeError: Cannot read property 'newLine' of undefined
    at Object.getNewLineCharacter (/home/pratik/WebstormProjects/playground/playground/node_modules/typescript/lib/typescript.js:9618:20)
    at Object.createCompilerHost (/home/pratik/WebstormProjects/playground/playground/node_modules/typescript/lib/typescript.js:66867:26)
    at Object.ngcLoader (/home/pratik/WebstormProjects/playground/playground/node_modules/@ngtools/webpack/src/loader.js:397:33)
 @ multi ./src/polyfills.ts

I am using Angular CLI 1.2.6, but the local 1.1.2 CLI was used to compile the app.