We have checked the policies in EMC and ensure policy is set for SRM to manage the replication array. This is right in place. Yesterday while we testing this, we got another error in between. here it is:
Unable to copy the configuration file. the operation experienced network error.
The same error mentioned in the release notes also. But don't know exactly what is causing this error. Now we some time get this error some time get the error mentioned in my first post. 
we already opened a case with EMC and they are trying to identify the issue from yesterday. But couldn't get anywhere so far. I will open case with VMware also and will post the update. If you guys have any idea please let me know. It will be really helpful for me.
Regards,
Hari.