Hello Gurvi
Most of the docs in CCO, does not state anything about GRE tunnel on 4948's, which means even though the commands are supported on the 4948 (which we can check with some test 4948's), Cisco will not support the technology in these boxes.. I have heard that the 4948's do support GRE tunnels, and is switched on software.. NO hardware switching available. Hence the number of tunnels might be really less and if it increases, it can increase the CPU processing of the switch.. Anyway, the 4948 switch was not designed for taking such connections, and it is really in for guys who want good backplane on server farm !!!
Hope this helps.. all the best...
Raj