diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/DeviceAgentServiceImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/DeviceAgentServiceImpl.java
index 5c59a48982..f759ed13a9 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/DeviceAgentServiceImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/DeviceAgentServiceImpl.java
@@ -100,11 +100,8 @@ public class DeviceAgentServiceImpl implements DeviceAgentService {
             device.getEnrolmentInfo().setDateOfLastUpdate(System.currentTimeMillis());
             boolean status = dms.enrollDevice(device);
             PolicyAdministratorPoint pap = DeviceMgtAPIUtils.getPolicyManagementService().getPAP();
-            List<DeviceIdentifier> deviceIdentifierList = new ArrayList<>();
             DeviceIdentifier deviceId = new DeviceIdentifier(device.getDeviceIdentifier(), device.getType());
-            deviceIdentifierList.add(deviceId);
-            Policy effectivePolicy = DeviceMgtAPIUtils.getPolicyManagementService().getPEP().getEffectivePolicy(deviceId);
-            pap.addPolicyToDevice(deviceIdentifierList, effectivePolicy);
+            DeviceMgtAPIUtils.getPolicyManagementService().getEffectivePolicy(deviceId);
             pap.publishChanges();
             return Response.status(Response.Status.OK).entity(status).build();
         } catch (DeviceManagementException e) {
@@ -118,9 +115,6 @@ public class DeviceAgentServiceImpl implements DeviceAgentService {
         } catch (PolicyManagementException e) {
             log.error("failed to add designated policies against newly enrolled device.", e);
             return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
-        } catch (PolicyEvaluationException e) {
-            log.error("failed while retrieving policies for newly enrolled device.", e);
-            return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
         }
     }
 
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java
index 9d15dfe362..0502f37ab3 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java
@@ -48,6 +48,7 @@ import org.wso2.carbon.device.mgt.jaxrs.service.impl.util.RequestValidationUtil;
 import org.wso2.carbon.device.mgt.jaxrs.util.DeviceMgtAPIUtils;
 import org.wso2.carbon.policy.mgt.common.PolicyAdministratorPoint;
 import org.wso2.carbon.policy.mgt.common.PolicyEvaluationException;
+import org.wso2.carbon.policy.mgt.common.PolicyEvaluationPoint;
 import org.wso2.carbon.policy.mgt.common.PolicyManagementException;
 
 import javax.ws.rs.core.Response;
@@ -268,12 +269,11 @@ public class GroupManagementServiceImpl implements GroupManagementService {
             DeviceMgtAPIUtils.getGroupManagementProviderService().addDevices(groupId, deviceIdentifiers);
             PolicyAdministratorPoint pap = DeviceMgtAPIUtils.getPolicyManagementService().getPAP();
             DeviceManagementProviderService dms = DeviceMgtAPIUtils.getDeviceManagementService();
-            Policy effectivePolicy = null;
             for(DeviceIdentifier deviceIdentifier : deviceIdentifiers) {
                 Device device = dms.getDevice(deviceIdentifier, false);
                 if(!device.getEnrolmentInfo().getStatus().equals(EnrolmentInfo.Status.REMOVED)) {
-                    effectivePolicy = DeviceMgtAPIUtils.getPolicyManagementService().getPEP().getEffectivePolicy(deviceIdentifier);
-                    pap.addPolicyToDevice(deviceIdentifiers, effectivePolicy);
+                    pap.removePolicyUsed(deviceIdentifier);
+                    DeviceMgtAPIUtils.getPolicyManagementService().getEffectivePolicy(deviceIdentifier);
                 }
             }
             pap.publishChanges();
@@ -287,9 +287,9 @@ public class GroupManagementServiceImpl implements GroupManagementService {
         } catch (PolicyManagementException e) {
             log.error("Error occurred while adding policies against device(s).", e);
             return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
-        } catch (PolicyEvaluationException e) {
-            log.error("Error occurred while retrieving policies against device(s).", e);
-            return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
+//        } catch (PolicyEvaluationException e) {
+//            log.error("Error occurred while retrieving policies against device(s).", e);
+//            return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
         } catch (DeviceManagementException e) {
             log.error("Error occurred while retrieving device information.", e);
             return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
@@ -302,12 +302,11 @@ public class GroupManagementServiceImpl implements GroupManagementService {
             DeviceMgtAPIUtils.getGroupManagementProviderService().removeDevice(groupId, deviceIdentifiers);
             PolicyAdministratorPoint pap = DeviceMgtAPIUtils.getPolicyManagementService().getPAP();
             DeviceManagementProviderService dms = DeviceMgtAPIUtils.getDeviceManagementService();
-            Policy effectivePolicy = null;
             for(DeviceIdentifier deviceIdentifier : deviceIdentifiers) {
                 Device device = dms.getDevice(deviceIdentifier, false);
                 if(!device.getEnrolmentInfo().getStatus().equals(EnrolmentInfo.Status.REMOVED)) {
-                    effectivePolicy = DeviceMgtAPIUtils.getPolicyManagementService().getPEP().getEffectivePolicy(deviceIdentifier);
-                    pap.addPolicyToDevice(deviceIdentifiers, effectivePolicy);
+                    pap.removePolicyUsed(deviceIdentifier);
+                    DeviceMgtAPIUtils.getPolicyManagementService().getEffectivePolicy(deviceIdentifier);
                 }
             }
             pap.publishChanges();
@@ -321,10 +320,7 @@ public class GroupManagementServiceImpl implements GroupManagementService {
         }catch (PolicyManagementException e) {
             log.error("Error occurred while adding policies against device(s).", e);
             return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
-        } catch (PolicyEvaluationException e) {
-            log.error("Error occurred while retrieving policies against device(s).", e);
-            return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
-        } catch (DeviceManagementException e) {
+        }catch (DeviceManagementException e) {
             log.error("Error occurred while retrieving device information.", e);
             return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
         }
@@ -339,8 +335,6 @@ public class GroupManagementServiceImpl implements GroupManagementService {
             List<DeviceGroup> deviceGroups = service.getGroups(deviceToGroupsAssignment.getDeviceIdentifier(), false);
             PolicyAdministratorPoint pap = DeviceMgtAPIUtils.getPolicyManagementService().getPAP();
             DeviceManagementProviderService dms = DeviceMgtAPIUtils.getDeviceManagementService();
-            Device device = null;
-            Policy effectivePolicy = null;
             for (DeviceGroup group : deviceGroups) {
                 Integer groupId = group.getGroupId();
                 if (deviceToGroupsAssignment.getDeviceGroupIds().contains(groupId)) {
@@ -352,8 +346,8 @@ public class GroupManagementServiceImpl implements GroupManagementService {
             for (int groupId : deviceToGroupsAssignment.getDeviceGroupIds()) {
                 DeviceMgtAPIUtils.getGroupManagementProviderService().addDevices(groupId, deviceIdentifiers);
                 for (DeviceIdentifier deviceIdentifier : deviceIdentifiers) {
-                    effectivePolicy = DeviceMgtAPIUtils.getPolicyManagementService().getPEP().getEffectivePolicy(deviceIdentifier);
-                    pap.addPolicyToDevice(deviceIdentifiers, effectivePolicy);
+                    pap.removePolicyUsed(deviceIdentifier);
+                    DeviceMgtAPIUtils.getPolicyManagementService().getEffectivePolicy(deviceIdentifier);
                 }
             }
             pap.publishChanges();
@@ -367,9 +361,6 @@ public class GroupManagementServiceImpl implements GroupManagementService {
         } catch (PolicyManagementException e) {
             log.error("Failed to add policies for device assigned to group.", e);
             return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
-        } catch (PolicyEvaluationException e) {
-            log.error("Failed while retrieving policies device assigned to group.", e);
-            return Response.status(Response.Status.INTERNAL_SERVER_ERROR).build();
         }
     }
 
diff --git a/components/policy-mgt/org.wso2.carbon.policy.mgt.core/src/main/java/org/wso2/carbon/policy/mgt/core/mgt/impl/PolicyManagerImpl.java b/components/policy-mgt/org.wso2.carbon.policy.mgt.core/src/main/java/org/wso2/carbon/policy/mgt/core/mgt/impl/PolicyManagerImpl.java
index c8737f1468..ffacfe8787 100644
--- a/components/policy-mgt/org.wso2.carbon.policy.mgt.core/src/main/java/org/wso2/carbon/policy/mgt/core/mgt/impl/PolicyManagerImpl.java
+++ b/components/policy-mgt/org.wso2.carbon.policy.mgt.core/src/main/java/org/wso2/carbon/policy/mgt/core/mgt/impl/PolicyManagerImpl.java
@@ -930,6 +930,7 @@ public class PolicyManagerImpl implements PolicyManager {
         try {
             device = deviceManagementService.getDevice(deviceIdentifier, false);
         } catch (DeviceManagementException e) {
+            PolicyManagementDAOFactory.rollbackTransaction();
             throw new PolicyManagementException("Error occurred while getting the device details (" +
                     deviceIdentifier.getId() + ")", e);
         }