This looks like something that might work.

Madhu , It is probably one in a thousand balconies that can boast of that kind of view, not sure who would have recommended enclosing that space. What's done is done. Temple location is usually decided using vastu principles. If you have to use that window we would recommend treat that adjoining wall similarly so that it looks larger as a good backdrop. Thanks, Nitin Cornerstone Designs, Bangalore

Hi Pritha, As according to the above scenario you can go with some wall paints which can camouflage the holes and since the hole is big so you can use cardboard to cover the hole and paint that cardboard with the same color paint, bringing a consistency to the walls as well as it can help in contrasting the decor of the entire room too. Moreover you can also go with wall paper too as this will make sure that the walls get covered entirely and thus you can able to cover that hole too to its maximum extent. Of course in this case the Pipe is large but still a small opening wont be much visible if you use dark paint or wallpaper over the wall. A small opening downwards which allows the pipe to go through is unremarkable in this case Through this you wont have to worry much about the false ceiling i suppose. I hope this might help Thanks Team Liveup

Thanks @Pritesh Randeria for your time and suggestion. I have already thought this below layout, which covers a little more area under false ceiling and also includes a pooja unit next to the crockery unit. But I am very much confused with the material and type of False Ceiling to be used here since there could be a seepage or leakage from the washroom above and the ceiling could be opened if needed. Thanks once again for your suggestions