Thanks Tero for your imputs. Although it does not help us in this case, it is something I was not aware of before.
IdM is connected to multiple systems SAP and Non-SAP and each have their own policies for termination. For example SAP team wants the ids to be deleted immediately and AD team would like to retain the account as disabled for 90 days before deletion. Hence, we could not set the flag in IdM.
Regards,
Subbu