A Virtual Private Network (VPN) provides private network connections over a publicly accessible shared network. The effective allocation of bandwidth for VPNs assumes significance in the present scenario due to varied traffic. Each VPN endpoint specifies bounds on the total amount of traffic that it is likely to send or receive at any time. The network provider tailors the VPN so that there is sufficient bandwidth for any traffic matrix that is consistent with these bounds. The approach incorporates the use of Ad-hoc On demand Distance Vector (AODV) protocol, with a view to accomplish an enhancement in the performance of the mobile networks. The NS2 based simulation results are evaluated in terms of its metrics for different bandwidth allocations, besides analyzing its performance in the event of exigencies such as link failures. The results highlight the suitability of the proposed strategy in the context of real time applications.