I went to mechanic last night to show him the sound that was coming from compressor area. First the sound was not coming at all when i turned on the AC. So i kept it on for a while and cycled it to ON and OFF and we waited for couple minutes and then it started coming. He poured water over the belts and the sound went away!
This is weird because when i squirted water from my spray bottle it did not go away. Kher his conclusion was to change belts and that compressor is fine.
Btw my car has clocked 113k kms he recommended me to change the timing belt because neglecting it might cause major damage to engine