Alpha blending issues

I've been googling around and trying a million different solutions, but I simply can't wrap my head around the solution of this problem I'm having.

What I'm doing is, using a mesh I mask out areas of a sprite (using stencil buffer). I then proceed to mask out an area of where I want the mesh to be visible. Then in a separate shader, attached in a material to the same mesh as the one with the first mask, I colour it in and based on the distance from the center of the object, and a falloff factor I blend the color from _Color to _ShadowColor. In order to make it blend nicely in with the sprite i masked out, I clamp the alpha value to make it display properly. However the problem comes when two meshes overlap each other as visible here:


Obviously there's an alpha blending problem going on, and I can't figure out how to work around it. Any help is appreciated!

EDIT:
Here's the shader code I'm using for the colouring of the lightMesh:

Code (CSharp):

1. Shader "Custom/Light Map"
2. {
3.     Properties
4.     {
5.         _Color ("Tint", Color) = (1,1,1,1)
6.         _ShadowColor ("Shadow color", Color) = (0, 0, 0, 1)
7.         _Ref ("Stencil ref", Int) = 1
8.         _Mask ("Stencil mask", Int) = 1
9.         _LightCenter ("Light center", Vector) = (0, 0, 0, 1)
10.         _LightRadius ("Light radius", Float) = 5
11.         _Falloff("Falloff", Float) = 1
12.         _Tex ("Tex", 2D) = "white" {}
13.     }
14.     SubShader
15.     {
16.         Tags
17.         {
18.             "Queue"="Transparent"
19.             "IgnoreProjector"="True"
20.             "RenderType"="Transparent"
21.         }
22.  
23.         Cull Back
24.         Lighting Off
25.         ZWrite Off
26.         Blend SrcAlpha OneMinusSrcAlpha
27.  
28.         Stencil
29.         {
30.             Ref 1
31.             ReadMask 1
32.             Comp equal
33.         }
34.  
35.         Stencil
36.         {
37.             Ref 2
38.             ReadMask 2
39.             Comp equal
40.         }
41.  
42.         Pass
43.         {
44.         CGPROGRAM
45.             #pragma vertex vert
46.             #pragma fragment frag
47.             #include "UnityCG.cginc"
48.            
49.             struct appdata_t
50.             {
51.                 float4 vertex   : POSITION;
52.                 float4 color    : COLOR;
53.             };
54.  
55.             struct v2f
56.             {
57.                 float4 vertex   : SV_POSITION;
58.                 fixed4 color    : COLOR;
59.                 float2 dist : TEXCOORD1;
60.             };
61.  
62.             sampler2D _Tex;
63.             fixed4 _Color;
64.             fixed4 _ShadowColor;
65.             uniform float4 _LightCenter;
66.             uniform float _LightRadius;
67.             uniform float _Falloff;
68.  
69.             v2f vert(appdata_t IN)
70.             {
71.                 v2f OUT;
72.                 OUT.vertex = mul(UNITY_MATRIX_MVP, IN.vertex);
73.                 OUT.color = IN.color * _Color;
74.                 OUT.dist.x = distance(mul(_Object2World, IN.vertex).xy, _LightCenter.xy);
75.                 return OUT;
76.             }
77.  
78.             fixed4 frag(v2f IN) : SV_Target
79.             {
80.                 float dist = IN.dist.x;
81.                 fixed4 sCol = _ShadowColor;
82.                 fixed4 col = lerp(_Color, sCol, _Falloff *  dist / _LightRadius);
83.                 if(_Color.a > _ShadowColor.a)
84.                 {
85.                     col.a *= smoothstep(sCol.a, _Color.a, col.a);
86.                     col.a = clamp(col.a, sCol.a, _Color.a);
87.                 }
88.                 else
89.                 {
90.                     col.a *= smoothstep(_Color.a, sCol.a, col.a);
91.                     col.a = clamp(col.a, _Color.a, sCol.a);
92.                 }
93.                 fixed4 c = tex2D(_Tex, float2(0, 0)) * col;
94.                 c.rgb *= c.a;
95.                 return c;
96.             }
97.         ENDCG
98.         }
99.     }
100. }
101.  

 

Bump :/