diff --git a/pkg/apiserver/registry/virtualmachinepolicy/rest.go b/pkg/apiserver/registry/virtualmachinepolicy/rest.go
index 6e6de941..812db77b 100644
--- a/pkg/apiserver/registry/virtualmachinepolicy/rest.go
+++ b/pkg/apiserver/registry/virtualmachinepolicy/rest.go
@@ -83,7 +83,10 @@ func (r *REST) Get(ctx context.Context, name string, _ *metav1.GetOptions) (runt
 		return nil, errors.NewNotFound(runtimev1alpha1.Resource("virtualmachinepolicy"), name)
 	}
 	// For a given vm namespaced name there should be only one matching tracker.
-	return r.convertToVmp(objs[0]), nil
+	if vmp := r.convertToVmp(objs[0]); vmp != nil {
+		return vmp, nil
+	}
+	return nil, nil
 }
 
 func (r *REST) List(ctx context.Context, _ *internalversion.ListOptions) (runtime.Object, error) {
@@ -97,7 +100,9 @@ func (r *REST) List(ctx context.Context, _ *internalversion.ListOptions) (runtim
 	vmpList := &runtimev1alpha1.VirtualMachinePolicyList{}
 	for _, obj := range objs {
 		vmp := r.convertToVmp(obj)
-		vmpList.Items = append(vmpList.Items, *vmp)
+		if vmp != nil {
+			vmpList.Items = append(vmpList.Items, *vmp)
+		}
 	}
 	return vmpList, nil
 }
@@ -135,6 +140,9 @@ func (r *REST) ConvertToTable(_ context.Context, obj runtime.Object, _ runtime.O
 func (r *REST) convertToVmp(obj interface{}) *runtimev1alpha1.VirtualMachinePolicy {
 	failed, inProgress := false, false
 	tracker := obj.(*networkpolicy.CloudResourceNpTracker)
+	if len(tracker.NpStatus) == 0 {
+		return nil
+	}
 	for _, status := range tracker.NpStatus {
 		if status.Realization == runtimev1alpha1.Failed {
 			failed = true
diff --git a/pkg/controllers/networkpolicy/tracker.go b/pkg/controllers/networkpolicy/tracker.go
index 34803db3..69af1673 100644
--- a/pkg/controllers/networkpolicy/tracker.go
+++ b/pkg/controllers/networkpolicy/tracker.go
@@ -61,6 +61,7 @@ func (r *NetworkPolicyReconciler) newCloudResourceNpTracker(rsc *cloudresource.C
 	}
 
 	// A vm is uniquely identified by its cloud assigned id and vpc id.
+	// TODO: Same vm imported in multiple Namespaces is not supported.
 	vm := vmItems[0].(*runtimev1alpha1.VirtualMachine)
 	tracker := &CloudResourceNpTracker{
 		appliedToSGs:     make(map[string]*appliedToSecurityGroup),
@@ -109,7 +110,8 @@ func (r *NetworkPolicyReconciler) processCloudResourceNpTrackers() {
 		npStatus, ok := status[tracker.NamespacedName.Namespace]
 		if !ok {
 			// Should not occur.
-			log.Error(fmt.Errorf("failed to get NetworkPolicy status for tracker"), "", "tracker", tracker)
+			log.Error(fmt.Errorf("failed to get NetworkPolicy status for tracker"), "",
+				"tracker", tracker, "appliedToSGs", tracker.appliedToSGs, "appliedToToNpMap", tracker.appliedToToNpMap)
 			tracker.unmarkDirty()
 			continue
 		}
@@ -161,6 +163,7 @@ func (c *CloudResourceNpTracker) computeNpStatus(r *NetworkPolicyReconciler) map
 
 	// retrieve all network policies related to cloud resource's applied groups
 	npMap := make(map[interface{}]string)
+	changed := false
 	appliedToToNpMap := make(map[string][]types.NamespacedName)
 	for key, asg := range c.appliedToSGs {
 		nps, err := r.networkPolicyIndexer.ByIndex(networkPolicyIndexerByAppliedToGrp, asg.id.Name)
@@ -172,6 +175,7 @@ func (c *CloudResourceNpTracker) computeNpStatus(r *NetworkPolicyReconciler) map
 		// Not considering cloud resources belongs to multiple AppliedToGroups of same NetworkPolicy.
 		for _, i := range nps {
 			namespacedName := types.NamespacedName{Namespace: i.(*networkPolicy).Namespace, Name: i.(*networkPolicy).Name}
+			changed = true
 			appliedToToNpMap[asg.id.Name] = append(appliedToToNpMap[asg.id.Name], namespacedName)
 			npMap[i] = key
 		}
@@ -231,6 +235,7 @@ func (c *CloudResourceNpTracker) computeNpStatus(r *NetworkPolicyReconciler) map
 	}
 
 	for _, asg := range newPrevSgs {
+		changed = true
 		if asg.status == nil {
 			delete(c.appliedToToNpMap, asg.id.Name)
 			delete(newPrevSgs, asg.id.CloudResourceID.String())
@@ -284,6 +289,30 @@ func (c *CloudResourceNpTracker) computeNpStatus(r *NetworkPolicyReconciler) map
 		}
 	}
 
+	// When a NP is deleted, but the appliedToGroup delete is not received yet, then NP Status is computed based on
+	// previous appliedToSgs. Suppose prevAppliedToSGs is nil, then NP status will be empty.
+	// An additional check required to compute the NP status, based on the appliedToToNpMap and appliedToSGs.
+	// If there are any entries in appliedToToNpMap with an appliedToSG, set the np status as in progress, since
+	// appliedToGroup is in a transient state.
+	if !changed && len(c.appliedToToNpMap) > 0 {
+		for _, asg := range c.appliedToSGs {
+			if namespacedNames, ok := c.appliedToToNpMap[asg.id.Name]; ok {
+				for _, namespacedName := range namespacedNames {
+					npList, ok := ret[namespacedName.Namespace]
+					if !ok {
+						npList = make(map[string]*runtimev1alpha1.NetworkPolicyStatus)
+						ret[namespacedName.Namespace] = npList
+					}
+					npList[namespacedName.Name] = &runtimev1alpha1.NetworkPolicyStatus{
+						Reason:      NoneStr,
+						Realization: runtimev1alpha1.InProgress,
+					}
+					appliedToToNpMap[asg.id.Name] = append(appliedToToNpMap[asg.id.Name], namespacedName)
+				}
+			}
+		}
+	}
+
 	// Update the map with the latest data.
 	c.appliedToToNpMap = appliedToToNpMap
 	// Update the previous appliedToSgs.