diff --git a/api.go b/api.go
index d8cbe34..220da6e 100644
--- a/api.go
+++ b/api.go
@@ -15,7 +15,6 @@
 package apidVerifyApiKey
 
 import (
-	"database/sql"
 	"encoding/json"
 	"errors"
 	"io"
@@ -47,14 +46,14 @@
 }
 
 // handle client API
-func (apiManager *apiManager) handleRequest(w http.ResponseWriter, r *http.Request) {
+func (a *apiManager) handleRequest(w http.ResponseWriter, r *http.Request) {
 	w.Header().Set("Content-Type", "application/json")
 	verifyApiKeyReq, err := validateRequest(r.Body, w)
 	if err != nil {
 		return
 	}
 
-	b, err := apiManager.verifyAPIKey(verifyApiKeyReq)
+	b, err := a.verifyAPIKey(verifyApiKeyReq)
 
 	if err != nil {
 		respStatusCode, atoierr := strconv.Atoi(err.Error())
@@ -91,9 +90,10 @@
 	log.Debug(verifyApiKeyReq)
 
 	// 2. verify params
+	// TODO : make this method of verifyApiKeyReq struct
 	if verifyApiKeyReq.Action == "" || verifyApiKeyReq.ApiProxyName == "" || verifyApiKeyReq.OrganizationName == "" || verifyApiKeyReq.EnvironmentName == "" || verifyApiKeyReq.Key == "" {
-		// TODO : set correct fields in error response
-		errorResponse := errorResponse("Bad_REQUEST", "Missing element")
+		// TODO : set correct missing fields in error response
+		errorResponse, _ := json.Marshal(errorResponse("Bad_REQUEST", "Missing element", http.StatusBadRequest))
 		w.WriteHeader(http.StatusBadRequest)
 		w.Write(errorResponse)
 		return verifyApiKeyReq, errors.New("Bad_REQUEST")
@@ -112,25 +112,26 @@
 	err := apiM.dbMan.getApiKeyDetails(&dataWrapper)
 
 	switch {
-	case err == sql.ErrNoRows:
+	case err != nil && err.Error() == "InvalidApiKey":
 		reason := "API Key verify failed for (" + verifyApiKeyReq.Key + ", " + verifyApiKeyReq.OrganizationName + ")"
 		errorCode := "oauth.v2.InvalidApiKey"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
+		errResponse := errorResponse(reason, errorCode, http.StatusOK)
+		return json.Marshal(errResponse)
 
 	case err != nil:
 		reason := err.Error()
 		errorCode := "SEARCH_INTERNAL_ERROR"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusInternalServerError))
+		errResponse := errorResponse(reason, errorCode, http.StatusInternalServerError)
+		return json.Marshal(errResponse)
 	}
 
-	apiProduct := shortListApiProduct(dataWrapper.apiProducts, verifyApiKeyReq)
-	dataWrapper.verifyApiKeySuccessResponse.ApiProduct = apiProduct
+	dataWrapper.verifyApiKeySuccessResponse.ApiProduct = shortListApiProduct(dataWrapper.apiProducts, verifyApiKeyReq)
 	/*
 	 * Perform all validations
 	 */
-	errResponse, err := apiM.performValidations(dataWrapper)
+	errResponse := apiM.performValidations(dataWrapper)
 	if errResponse != nil {
-		return errResponse, err
+		return json.Marshal(&errResponse)
 	}
 
 	apiM.enrichAttributes(&dataWrapper)
@@ -183,79 +184,78 @@
 		}
 	}
 
-	// TODO : remove this check from here and let performValidations take care of checking this
-	if !verifyApiKeyReq.ValidateAgainstApiProxiesAndEnvs {
-		if len(rankedProducts[2]) > 0 {
-			return rankedProducts[2][0]
-		} else if len(rankedProducts[3]) > 0 {
-			return rankedProducts[3][0]
-		}
+	if len(rankedProducts[2]) > 0 {
+		return rankedProducts[2][0]
+	} else if len(rankedProducts[3]) > 0 {
+		return rankedProducts[3][0]
 	}
 
 	return bestMathcedProduct
 
 }
 
-func (apiM apiManager) performValidations(dataWrapper VerifyApiKeyRequestResponseDataWrapper) ([]byte, error) {
+func (apiM apiManager) performValidations(dataWrapper VerifyApiKeyRequestResponseDataWrapper) *ErrorResponse {
 	clientIdDetails := dataWrapper.verifyApiKeySuccessResponse.ClientId
 	verifyApiKeyReq := dataWrapper.verifyApiKeyRequest
 	appDetails := dataWrapper.verifyApiKeySuccessResponse.App
 	tempDeveloperDetails := dataWrapper.tempDeveloperDetails
 	cType := dataWrapper.ctype
 	apiProductDetails := dataWrapper.verifyApiKeySuccessResponse.ApiProduct
+	var reason, errorCode string
 
 	if !strings.EqualFold("APPROVED", clientIdDetails.Status) {
-		reason := "API Key verify failed for (" + verifyApiKeyReq.Key + ", " + verifyApiKeyReq.OrganizationName + ")"
-		errorCode := "oauth.v2.ApiKeyNotApproved"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
+		reason = "API Key verify failed for (" + verifyApiKeyReq.Key + ", " + verifyApiKeyReq.OrganizationName + ")"
+		errorCode = "oauth.v2.ApiKeyNotApproved"
 	}
 
 	if !strings.EqualFold("APPROVED", appDetails.Status) {
-		reason := "API Key verify failed for (" + verifyApiKeyReq.Key + ", " + verifyApiKeyReq.OrganizationName + ")"
-		errorCode := "keymanagement.service.invalid_client-app_not_approved"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
+		reason = "API Key verify failed for (" + verifyApiKeyReq.Key + ", " + verifyApiKeyReq.OrganizationName + ")"
+		errorCode = "keymanagement.service.invalid_client-app_not_approved"
 	}
 
 	if !strings.EqualFold("ACTIVE", tempDeveloperDetails.Status) {
-		reason := "API Key verify failed for (" + verifyApiKeyReq.Key + ", " + verifyApiKeyReq.OrganizationName + ")"
-		errorCode := "keymanagement.service.DeveloperStatusNotActive"
+		reason = "API Key verify failed for (" + verifyApiKeyReq.Key + ", " + verifyApiKeyReq.OrganizationName + ")"
+		errorCode = "keymanagement.service.DeveloperStatusNotActive"
 		if cType == "company" {
 			errorCode = "keymanagement.service.CompanyStatusNotActive"
 		}
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
 	}
 
 	if dataWrapper.verifyApiKeySuccessResponse.ApiProduct.Id == "" {
-		reason := "Path Validation Failed. Product not resolved"
-		errorCode := "oauth.v2.InvalidApiKeyForGivenResource"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
+		reason = "Path Validation Failed. Product not resolved"
+		errorCode = "oauth.v2.InvalidApiKeyForGivenResource"
 	}
 
-	result := validatePath(apiProductDetails.Resources, verifyApiKeyReq.UriPath)
-	if result == false {
-		reason := "Path Validation Failed (" + strings.Join(apiProductDetails.Resources, ", ") + " vs " + verifyApiKeyReq.UriPath + ")"
-		errorCode := "oauth.v2.InvalidApiKeyForGivenResource"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
+	result := len(apiProductDetails.Resources) == 0 || validatePath(apiProductDetails.Resources, verifyApiKeyReq.UriPath)
+	if !result {
+		reason = "Path Validation Failed (" + strings.Join(apiProductDetails.Resources, ", ") + " vs " + verifyApiKeyReq.UriPath + ")"
+		errorCode = "oauth.v2.InvalidApiKeyForGivenResource"
 	}
 
 	// TODO : empty check
-	if verifyApiKeyReq.ValidateAgainstApiProxiesAndEnvs && !contains(apiProductDetails.Apiproxies, verifyApiKeyReq.ApiProxyName) {
-		reason := "Proxy Validation Failed (" + strings.Join(apiProductDetails.Apiproxies, ", ") + " vs " + verifyApiKeyReq.ApiProxyName + ")"
-		errorCode := "oauth.v2.InvalidApiKeyForGivenResource"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
+	if verifyApiKeyReq.ValidateAgainstApiProxiesAndEnvs && (len(apiProductDetails.Apiproxies) > 0 && !contains(apiProductDetails.Apiproxies, verifyApiKeyReq.ApiProxyName)) {
+		reason = "Proxy Validation Failed (" + strings.Join(apiProductDetails.Apiproxies, ", ") + " vs " + verifyApiKeyReq.ApiProxyName + ")"
+		errorCode = "oauth.v2.InvalidApiKeyForGivenResource"
 	}
 	/* Verify if the ENV matches */
-	if verifyApiKeyReq.ValidateAgainstApiProxiesAndEnvs && !contains(apiProductDetails.Environments, verifyApiKeyReq.EnvironmentName) {
-		reason := "ENV Validation Failed (" + strings.Join(apiProductDetails.Environments, ", ") + " vs " + verifyApiKeyReq.EnvironmentName + ")"
-		errorCode := "oauth.v2.InvalidApiKeyForGivenResource"
-		return errorResponse(reason, errorCode), errors.New(strconv.Itoa(http.StatusOK))
+	if verifyApiKeyReq.ValidateAgainstApiProxiesAndEnvs && (len(apiProductDetails.Environments) > 0 && !contains(apiProductDetails.Environments, verifyApiKeyReq.EnvironmentName)) {
+		reason = "ENV Validation Failed (" + strings.Join(apiProductDetails.Environments, ", ") + " vs " + verifyApiKeyReq.EnvironmentName + ")"
+		errorCode = "oauth.v2.InvalidApiKeyForGivenResource"
+
 	}
 
-	return nil, nil
+	if errorCode != "" {
+		log.Debug("Validation error occoured ", errorCode, " ", reason)
+		ee := errorResponse(reason, errorCode, http.StatusOK)
+		return &ee
+	}
+
+	return nil
 
 }
 
 func (a *apiManager) enrichAttributes(dataWrapper *VerifyApiKeyRequestResponseDataWrapper) {
+
 	attributeMap := a.dbMan.getKmsAttributes(dataWrapper.tenant_id, dataWrapper.verifyApiKeySuccessResponse.ClientId.ClientId, dataWrapper.tempDeveloperDetails.Id, dataWrapper.verifyApiKeySuccessResponse.ApiProduct.Id, dataWrapper.verifyApiKeySuccessResponse.App.Id)
 
 	clientIdAttributes := attributeMap[dataWrapper.verifyApiKeySuccessResponse.ClientId.ClientId]
@@ -269,7 +269,7 @@
 	dataWrapper.tempDeveloperDetails.Attributes = developerAttributes
 }
 
-func errorResponse(reason, errorCode string) []byte {
+func errorResponse(reason, errorCode string, statusCode int) ErrorResponse {
 	if errorCode == "SEARCH_INTERNAL_ERROR" {
 		log.Error(reason)
 	} else {
@@ -278,7 +278,7 @@
 	resp := ErrorResponse{
 		ResponseCode:    errorCode,
 		ResponseMessage: reason,
+		StatusCode:      statusCode,
 	}
-	ret, _ := json.Marshal(resp)
-	return ret
+	return resp
 }
diff --git a/api_ShortListApiProduct_test.go b/api_ShortListApiProduct_test.go
index f604b83..f41e118 100644
--- a/api_ShortListApiProduct_test.go
+++ b/api_ShortListApiProduct_test.go
@@ -130,13 +130,3 @@
 		}
 	}
 }
-
-func TestShortListApiProductValidateProxyEnv(t *testing.T) {
-	for _, td := range shortListApiProductTestData {
-		td.req.ValidateAgainstApiProxiesAndEnvs = true
-		actual := shortListApiProduct(td.dbData, td.req)
-		if actual.Id != td.expectedWhenValidateProxyEnvIsTrue {
-			t.Errorf("TestData (%s) ValidateProxyEnv (%t) : expected (%s), actual (%s)", td.testDesc, td.req.ValidateAgainstApiProxiesAndEnvs, td.expectedResult, actual.Id)
-		}
-	}
-}
diff --git a/api_performValidations_test.go b/api_performValidations_test.go
index 1054308..c6e015d 100644
--- a/api_performValidations_test.go
+++ b/api_performValidations_test.go
@@ -15,6 +15,7 @@
 package apidVerifyApiKey
 
 import (
+	"encoding/json"
 	"github.com/30x/apid-core"
 	"github.com/30x/apid-core/factory"
 	"testing"
@@ -212,6 +213,102 @@
 			},
 		},
 	},
+	{
+		testDesc:                           "resources not configured in db",
+		expectedResult:                     "",
+		expectedWhenValidateProxyEnvIsTrue: "",
+		dataWrapper: VerifyApiKeyRequestResponseDataWrapper{
+			verifyApiKeyRequest: VerifyApiKeyRequest{
+				Key:              "test-key",
+				OrganizationName: "test-org",
+				UriPath:          "/test",
+				ApiProxyName:     "test-proxy-name",
+				EnvironmentName:  "test-env-name",
+			},
+			tempDeveloperDetails: DeveloperDetails{
+				Status: "ACTIVE",
+			},
+			verifyApiKeySuccessResponse: VerifyApiKeySuccessResponse{
+				ApiProduct: ApiProductDetails{
+					Id:           "test-api-product",
+					Resources:    []string{},
+					Apiproxies:   []string{"test-proxy-name"},
+					Environments: []string{"test-env-name"},
+					Status:       "APPROVED",
+				},
+				App: AppDetails{
+					Status: "APPROVED",
+				},
+				ClientId: ClientIdDetails{
+					Status: "APPROVED",
+				},
+			},
+		},
+	},
+	{
+		testDesc:                           "proxies not configured in db",
+		expectedResult:                     "",
+		expectedWhenValidateProxyEnvIsTrue: "",
+		dataWrapper: VerifyApiKeyRequestResponseDataWrapper{
+			verifyApiKeyRequest: VerifyApiKeyRequest{
+				Key:              "test-key",
+				OrganizationName: "test-org",
+				UriPath:          "/test",
+				ApiProxyName:     "test-proxy-name",
+				EnvironmentName:  "test-env-name",
+			},
+			tempDeveloperDetails: DeveloperDetails{
+				Status: "ACTIVE",
+			},
+			verifyApiKeySuccessResponse: VerifyApiKeySuccessResponse{
+				ApiProduct: ApiProductDetails{
+					Id:           "test-api-product",
+					Resources:    []string{"/test"},
+					Apiproxies:   []string{},
+					Environments: []string{"test-env-name"},
+					Status:       "APPROVED",
+				},
+				App: AppDetails{
+					Status: "APPROVED",
+				},
+				ClientId: ClientIdDetails{
+					Status: "APPROVED",
+				},
+			},
+		},
+	},
+	{
+		testDesc:                           "environments not configured in db",
+		expectedResult:                     "",
+		expectedWhenValidateProxyEnvIsTrue: "",
+		dataWrapper: VerifyApiKeyRequestResponseDataWrapper{
+			verifyApiKeyRequest: VerifyApiKeyRequest{
+				Key:              "test-key",
+				OrganizationName: "test-org",
+				UriPath:          "/test",
+				ApiProxyName:     "test-proxy-name",
+				EnvironmentName:  "test-env-name",
+			},
+			tempDeveloperDetails: DeveloperDetails{
+				Status: "ACTIVE",
+			},
+			verifyApiKeySuccessResponse: VerifyApiKeySuccessResponse{
+				ApiProduct: ApiProductDetails{
+					Id:           "test-api-product",
+					Resources:    []string{"/test"},
+					Apiproxies:   []string{"test-proxy-name"},
+					Environments: []string{},
+					Status:       "APPROVED",
+				},
+				App: AppDetails{
+					Status: "APPROVED",
+				},
+				ClientId: ClientIdDetails{
+					Status: "APPROVED",
+				},
+			},
+		},
+	},
 }
 
 func TestPerformValidation(t *testing.T) {
@@ -221,12 +318,16 @@
 	log = factory.DefaultServicesFactory().Log()
 	a := apiManager{}
 	for _, td := range performValidationsTestData {
-		actual, err := a.performValidations(td.dataWrapper)
-		if string(actual) != td.expectedResult {
-			t.Errorf("TestData (%s) ValidateProxyEnv (%t) : expected (%s), actual (%s)", td.testDesc, td.dataWrapper.verifyApiKeyRequest.ValidateAgainstApiProxiesAndEnvs, td.expectedResult, string(actual))
+		actualObject := a.performValidations(td.dataWrapper)
+		var actual string
+		if actualObject != nil {
+			a, _ := json.Marshal(&actualObject)
+			actual = string(a)
+		} else {
+			actual = ""
 		}
-		if err != nil && err.Error() != "200" {
-			t.Error("Expected to return 200 status code")
+		if string(actual) != td.expectedResult {
+			t.Errorf("TestData (%s) ValidateProxyEnv (%t) : expected (%s), actual (%s)", td.testDesc, td.dataWrapper.verifyApiKeyRequest.ValidateAgainstApiProxiesAndEnvs, td.expectedResult, actual)
 		}
 	}
 }
@@ -239,12 +340,17 @@
 	a := apiManager{}
 	for _, td := range performValidationsTestData {
 		td.dataWrapper.verifyApiKeyRequest.ValidateAgainstApiProxiesAndEnvs = true
-		actual, err := a.performValidations(td.dataWrapper)
-		if string(actual) != td.expectedWhenValidateProxyEnvIsTrue {
-			t.Errorf("TestData (%s) ValidateProxyEnv (%t) : expected (%s), actual (%s)", td.testDesc, td.dataWrapper.verifyApiKeyRequest.ValidateAgainstApiProxiesAndEnvs, td.expectedWhenValidateProxyEnvIsTrue, string(actual))
+		actualObject := a.performValidations(td.dataWrapper)
+		var actual string
+		if actualObject != nil {
+			a, _ := json.Marshal(&actualObject)
+			actual = string(a)
+		} else {
+			actual = ""
 		}
-		if err != nil && err.Error() != "200" {
-			t.Error("Expected to return 200 status code")
+		if string(actual) != td.expectedWhenValidateProxyEnvIsTrue {
+
+			t.Errorf("TestData (%s) ValidateProxyEnv (%t) : expected (%s), actual (%s)", td.testDesc, td.dataWrapper.verifyApiKeyRequest.ValidateAgainstApiProxiesAndEnvs, td.expectedWhenValidateProxyEnvIsTrue, actual)
 		}
 	}
 }
diff --git a/data.go b/data.go
index 2674a92..695ef8e 100644
--- a/data.go
+++ b/data.go
@@ -254,7 +254,7 @@
 
 	if err != nil {
 		log.Error("error fetching verify apikey details ", err)
-		return err
+		return errors.New("InvalidApiKey")
 	}
 
 	if dataWrapper.verifyApiKeySuccessResponse.App.CallbackUrl != "" {
diff --git a/verifyAPIKey_suite_test_old.go.bak b/verifyAPIKey_suite_test_old.go.bak
deleted file mode 100644
index ff656a3..0000000
--- a/verifyAPIKey_suite_test_old.go.bak
+++ /dev/null
@@ -1,142 +0,0 @@
-// Copyright 2017 Google Inc.
-//
-// Licensed under the Apache License, Version 2.0 (the "License");
-// you may not use this file except in compliance with the License.
-// You may obtain a copy of the License at
-//
-//      http://www.apache.org/licenses/LICENSE-2.0
-//
-// Unless required by applicable law or agreed to in writing, software
-// distributed under the License is distributed on an "AS IS" BASIS,
-// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-// See the License for the specific language governing permissions and
-// limitations under the License.
-
-package apidVerifyApiKey
-
-import (
-	. "github.com/onsi/ginkgo"
-	. "github.com/onsi/gomega"
-
-	"github.com/30x/apid-core"
-	"github.com/30x/apid-core/factory"
-	"io/ioutil"
-	//"net/http"
-	"net/http/httptest"
-	"os"
-	"testing"
-)
-
-var (
-	testTempDir string
-	testServer  *httptest.Server
-)
-
-var _ = BeforeSuite(func() {
-	apid.Initialize(factory.DefaultServicesFactory())
-
-	config := apid.Config()
-
-	var err error
-	testTempDir, err = ioutil.TempDir("", "api_test")
-	Expect(err).NotTo(HaveOccurred())
-
-	config.Set("data_path", testTempDir)
-
-	apid.InitializePlugins("")
-
-	db, err := apid.Data().DB()
-	Expect(err).NotTo(HaveOccurred())
-	//setDB(db)
-	//createTables(db)
-	//createApidClusterTables(db)
-	//addScopes(db)
-	//testServer = httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, req *http.Request) {
-	//	if req.URL.Path == apiPath {
-	//		handleRequest(w, req)
-	//	}
-	//}))
-
-	createTestData(db)
-})
-
-var _ = AfterSuite(func() {
-	apid.Events().Close()
-	if testServer != nil {
-		testServer.Close()
-	}
-	os.RemoveAll(testTempDir)
-})
-
-func TestVerifyAPIKey(t *testing.T) {
-	RegisterFailHandler(Fail)
-	RunSpecs(t, "VerifyAPIKey Suite")
-}
-
-func createTestData(db apid.DB) {
-	txn, err := db.Begin()
-	Expect(err).ShouldNot(HaveOccurred())
-	// api products
-	for i := 0; i < 10; i++ {
-		generateTestApiProduct(i, txn)
-	}
-	// developers
-	for i := 0; i < 10; i++ {
-		generateTestDeveloper(i, txn)
-	}
-
-	// application
-	var j, k int
-	for i := 0; i < 10; i++ {
-		for j = k; j < 10+k; j++ {
-			generateTestApp(j, i, txn)
-		}
-		k = j
-	}
-	// app credentials
-	for i := 0; i < 10; i++ {
-		generateTestAppCreds(i, txn)
-	}
-	// api product mapper
-	for i := 0; i < 10; i++ {
-		generateTestApiProductMapper(i, txn)
-	}
-
-	// Following are data for company
-	// api products
-	for i := 100; i < 110; i++ {
-		generateTestApiProduct(i, txn)
-	}
-
-	// companies
-	for i := 100; i < 110; i++ {
-		generateTestCompany(i, txn)
-	}
-
-	// company developers
-	for i := 100; i < 110; i++ {
-		generateTestCompanyDeveloper(i, txn)
-	}
-
-	// application
-	k = 100
-	for i := 100; i < 110; i++ {
-		for j = k; j < 100+k; j++ {
-			generateTestAppCompany(j, i, txn)
-		}
-		k = j
-	}
-	// app credentials
-	for i := 100; i < 110; i++ {
-		generateTestAppCreds(i, txn)
-	}
-	// api product mapper
-	for i := 100; i < 110; i++ {
-		generateTestApiProductMapper(i, txn)
-	}
-
-	txn.Commit()
-	var count int64
-	db.QueryRow("select count(*) from EDGEX_DATA_SCOPE").Scan(&count)
-	log.Info("Found ", count)
-}
diff --git a/verifyApiKeyStructs.go b/verifyApiKeyStructs.go
index 49a4b15..8c15778 100644
--- a/verifyApiKeyStructs.go
+++ b/verifyApiKeyStructs.go
@@ -87,6 +87,7 @@
 type ErrorResponse struct {
 	ResponseCode    string `json:"response_code,omitempty"`
 	ResponseMessage string `json:"response_message,omitempty"`
+	StatusCode      int    `json:"-"`
 	Kind            string `json:"kind,omitempty"`
 }