@Aniket Jagadale Thank you for reaching out to Microsoft Q&A.
From the above NW diagram, I see this may have some glitches. While Azure Route Server (ARS) supports Peering as given here in the FAQ section:
Yes, if you peer a virtual network hosting the Azure Route Server to another virtual network and you enable Use Remote Gateway on the second virtual network, Azure Route Server will learn the address spaces of that virtual network and send them to all the peered NVAs. It will also program the routes from the NVAs into the routing table of the VMs in the peered virtual network.
It still needs NVAs in the Spoke/Hub networks so the ARS can exchange routes. This is because- Azure Route Server only exchanges BGP routes with your NVA. The data traffic goes directly from the NVA to the destination VM and directly from the VM to the NVA.
I think based upon your requirement; you can follow a similar setup as shown in this document but with one ER and one VPN GWs-
Hope this helps. Please let us know if you have any further questions and we will be glad to assist you further. Thank you!
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