ravinikhil:
Did you submit your application yet? If not, you could change yours in a way that creates enough separation between what he copied from yours and what you ultimately submit.
If you did, don't panic. It's actually very common for recommendation letters and essays to overlap on specific points, especially if they are about a candidate's proudest achievements.
If he copied and pasted the sentences verbatim (and it's been submitted), then there's not much you can do nor is there real reason to panic. The AdCom knows that recommenders are busy (and sometimes lazy) and that these things sometimes happen. It's not a false story nor did you/he do anything wrong. They just might not consider his recommendation letter to carry all that weight.
How was the other recommendation letter? Any sense for its relatively strength?
Lastly, if you are applying anywhere else, I might seek a different recommender. This person seems like he can't be trusted entirely even if it's intentions are benevolent.