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Hi @AKHILKUNNATH
I suggest boot your device into safe mode:
http://talk.sonymobile.com/t5/FAQ/How-to-boot-your-phone-into-safe-mode/m-p/348008#U348008
Then go to -> settings -> about phone -> diagnostics -> test your phone
If speaker works ok, a third party app its creating this issue.
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I'm at disposal for any question.
Best Regards,
Hi AKHILKUNNATH,
Have you got microphone noise suppression or speakervoice enhancement on under Settings > Sound & notification?