diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/DeviceIdentifier.java b/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/DeviceIdentifier.java
index 66682fe6d9..2cc27e6236 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/DeviceIdentifier.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/DeviceIdentifier.java
@@ -24,6 +24,13 @@ public class DeviceIdentifier implements Serializable{
     private String id;
     private String type;
 
+    public DeviceIdentifier() {}
+
+    public DeviceIdentifier(String id, String type) {
+        this.id = id;
+        this.type = type;
+    }
+
     public String getType() {
         return type;
     }
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/spi/DeviceManager.java b/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/spi/DeviceManager.java
index 0eb13dee00..0535062f30 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/spi/DeviceManager.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.common/src/main/java/org/wso2/carbon/device/mgt/common/spi/DeviceManager.java
@@ -134,4 +134,6 @@ public interface DeviceManager {
      */
     boolean setOwnership(DeviceIdentifier deviceId, String ownershipType) throws DeviceManagementException;
 
+    boolean isClaimable(DeviceIdentifier deviceId) throws DeviceManagementException;
+
 }
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/DeviceManagementServiceProviderImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/DeviceManagementServiceProviderImpl.java
index bb9ebd9ee9..595a3906a1 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/DeviceManagementServiceProviderImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/DeviceManagementServiceProviderImpl.java
@@ -108,7 +108,11 @@ public class DeviceManagementServiceProviderImpl implements DeviceManagementServ
         try {
             org.wso2.carbon.device.mgt.core.dto.Device deviceDto = DeviceManagementDAOUtil.convertDevice(device);
             DeviceType deviceType = this.getDeviceTypeDAO().getDeviceType(device.getType());
-            deviceDto.setStatus(Status.ACTIVE);
+            if (dms.isClaimable(new DeviceIdentifier(device.getDeviceIdentifier(), deviceType.getName()))) {
+                deviceDto.setStatus(Status.INACTIVE);
+            } else {
+                deviceDto.setStatus(Status.ACTIVE);
+            }
             deviceDto.setDeviceTypeId(deviceType.getId());
             this.getDeviceDAO().addDevice(deviceDto);
         } catch (DeviceManagementDAOException e) {
@@ -410,6 +414,13 @@ public class DeviceManagementServiceProviderImpl implements DeviceManagementServ
         return dms.setOwnership(deviceId, ownershipType);
     }
 
+    @Override
+    public boolean isClaimable(DeviceIdentifier deviceId) throws DeviceManagementException {
+        DeviceManager dms =
+                this.getPluginRepository().getDeviceManagementProvider(deviceId.getType());
+        return dms.isClaimable(deviceId);
+    }
+
     @Override
     public License getLicense(String deviceType, String languageCode) throws LicenseManagementException {
         return DeviceManagementDataHolder.getInstance().getLicenseManager().getLicense(deviceType, languageCode);
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/DeviceManagementServiceImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/DeviceManagementServiceImpl.java
index cd133a9aa0..03e50611cb 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/DeviceManagementServiceImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/DeviceManagementServiceImpl.java
@@ -110,6 +110,11 @@ public class DeviceManagementServiceImpl implements DeviceManagementService {
                 ownershipType);
     }
 
+    @Override
+    public boolean isClaimable(DeviceIdentifier deviceId) throws DeviceManagementException {
+        return DeviceManagementDataHolder.getInstance().getDeviceManagementProvider().isClaimable(deviceId);
+    }
+
     @Override
     public License getLicense(String deviceType, String languageCode) throws LicenseManagementException {
         return DeviceManagementDataHolder.getInstance().getDeviceManagementProvider().getLicense(deviceType,
@@ -212,4 +217,7 @@ public class DeviceManagementServiceImpl implements DeviceManagementService {
         return DeviceManagementDataHolder.getInstance().getDeviceManagementProvider()
                                     .getDevicesByName(deviceName, tenantId);
     }
+
+
+
 }
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/TestDeviceManager.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/TestDeviceManager.java
index 5f76d4f862..4812e6cd08 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/TestDeviceManager.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/TestDeviceManager.java
@@ -88,6 +88,11 @@ public class TestDeviceManager implements DeviceMgtService {
         return false;
     }
 
+    @Override
+    public boolean isClaimable(DeviceIdentifier deviceId) throws DeviceManagementException {
+        return false;
+    }
+
     @Override
     public void installApplication(Operation operation, List<DeviceIdentifier> deviceIdentifiers)
             throws AppManagerConnectorException {