Hello @Karthick G ,
Transitive peering is not supported in Azure which means if you peer VNet1 to VNet2 and you peer VNet1 to VNet3, VNet2 and VNet3 are NOT automatically peered. You must peer VNet2 and VNet3 to establish communication between VNet 2 & 3.
Please refer : https://learn.microsoft.com/en-us/azure/virtual-network/virtual-networks-faq#if-i-peer-vneta-to-vnetb-and-i-peer-vnetb-to-vnetc-does-that-mean-vneta-and-vnetc-are-peered
You can find the connectivity options available for Azure resources in below article:
https://learn.microsoft.com/en-us/azure/virtual-network/virtual-networks-overview#communicate-between-azure-resources
Hope this helps!
Kindly let us know if the above helps or you need further assistance on this issue.
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