Hi @Rohit Sapru Thank you for posting your question on Microsoft Q&A.
From what I understand you are referring to Azure stretch database, it does work for Azure SQL, but it is not yet implemented with Azure SQL managed Instance.
Please review the doc below and let me know if that answer your question.
https://learn.microsoft.com/en-us/sql/sql-server/stretch-database/get-started-by-running-the-enable-database-for-stretch-wizard?view=sql-server-ver15
https://feedback.azure.com/forums/915676-sql-managed-instance/suggestions/35697997-enable-stretch-db-on-sql-managed-instance
Regards,
Oury