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Guys, Problem identified and rectified. After dismantle the engine we found that there is no bit of sludge deposited. Metal looked glistering shine. I"ll upload a photo later. However, the problem was stucked oil rings and compression rings "mechanics language - oil rings badalaa" . This has happened by oil residues. It seems these oil residues have glued rings on to the piston while not allowing it to expand and seal the clearance between the piston and the body. So that the oil sprayed to the bottom area of the piston has gone to the combustion chamber and burnt. These kind of engines, we cannot observe or detect burning oil except a reduction in the oil level. According to the mechanic, rings were not needed to be replaced. Just cleaning was sufficient. Now the vehicle is ready to go. Did couple of test runs and everything is okay. Got the repair done at famous honda Garage in Polgolla. Very cooperative, nice people. Still I am wondering what has caused this problem. One reason would be lengthy oil changing interval (see above what I have posted), though I used Honda Synthetic Oil (9000 km changing interval). I was told by the mechanic that this is often a problem in GP1. Still this is a mystery for me.......

Agree with you @Davy. In the past the knowledge was the education. Now it is changed. The skill to use correct keywords to find out relevant information is the education.

The Internet is full of idiots trying out things on their cars, but that doesn't mean they're recommended nor safe. Flushing with kerosene is simply a way to destroy your engine IMO. Even engine flushing solvents should only be used as a last resort. If you must flush, just flush using engine oil. Simply perform oil + filter changes in shorter intervals than usual. Search the forum for more info. This has been discussed in detail.