Thank you piyatiwari for your words. You have made couple of good points.
1) Conceptual problem
2) Implementation problem
I was evaluating my performance after the exam and I came to the conclusion that it was indeed implementation problem. Couple of days before exam I read an article which said about experimental questions. The first 15 questions in verbal are most important and last 10 questions are important as they count towards your score and in between questions can be experimental and can be skipped.

This is ofcourse correct and there are enough reasons behind that conclusion but I am not going to discuss anything on that. My approval until then to verbal was answer with my own pace and answer around 38 questions and the last 3 or 4 can be guessed. I was consistently scoring 35 above with this approach in GMAT prep tests and
MGMAT tests. After reading that article (read this before 2 days of my actual GMAT) I thought OK, instead of guessing in the end let me guess somewhere in the middle and move on and finish all the questions. But I never implemented this strategy in any of the practice tests since I am completed with all the tests as it was only 2 days before the test. This was my biggest mistake, I should have never tried this strategy in the actual exam. I was comfortable answering questions till 15 or 16, but then I had this on back of my mind that I should skip some questions because I will ultimately run out of time and will miss out on the last questions. Since I never skipped questions in my practice tests I was little skeptical in skipping and instead I thought let me give a try and see the difficulty level and move on. I wasted lot of time(around 1.5mins for each question) in reading the questions and marking some random guesses. From here on I was not comfortable with the test. I had that guilty feeling that I wasted time in reading the questions and marked some random answers. It dented my confidence and eventually I had to guess 2 questions in the end. Rest is history
Important take away for prospective gmat test takers:- Never change your strategy last minute. If you want to change strategy try it with some of the practice CAT's and access your comfortable level.
I am retaking the test on Nov15th. I am also planning to register in
e-gmat verbal online course. This looks like a very good course for non-native English speakers.
Also piyatiwari, to answer your last question. Quant was moderate, I dont say it was too easy or too tough. Nevertheless I just had that feeling of geographical difficulty may be because of frustration. GMAC can't do that !! Can they ??
Good Luck to all you guys