Most likely an issue with the display controller. Should be covered under warranty.
1. Talk to service center.
2. Talk to flipkart.
3. Twit to both Moto India and Flipkart and post on their fb wall.
4. Finally threaten them to go to consumer court.
5. Go to consumer court.
You should get satisfactory result somewhere around step 2-3. If you manage to go upto step 5 you'll actually find your patience worth it, consumer court has been screwing the companies royally for the last couple of years.
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Trust me, no one wants the customers to go to consumer court or go to any government service. Last time Vodafone was screwing with one of my friends, he send a mail to them with Trai in cc and threatened to go to consumer court. About 3 managers called him up and literally begged not to take this further.