Wohooooo!
It got fixed somehow.Its working.
I did 2 things this morning.I am not sure which process fixed it :
1)Utility>Disk Utility .I performed Verify Disk,Verify Disk Permission,Repair Disk Permission.
Results-
#Verify Disk : "File system check exit code is 0."
#Verify Disk Permission : Lot of lines similar to "User differs on “private/var/db/displaypolicyd”; should be 0; user is 244.”
#Repair Disk Permission : Lines similar to "Repaired “private/var/db/displaypolicyd"."
I had not checked the camera after this process & Then,
2)I ran Apple Hardware Test(AHT).First just the TEST(2 min). Then, EXTENDED TEST(23 min).
I restarted MBA & opened FaceTime , PhotoBooth and BOOM!! the green light was lit and I could see myself on the screen.
Good Luck!