Anand's watch was correct at midnight after which it began to lose 14 minutes per hour until 7 hours ago it stopped completely. It now shows the time as 3.50 am. What is the correct time now?

3:50 am means that the clock has passed 3 hours and 50 min,=230" " min
For every 1 hour the clock losses 14" " min.
For every 1 hour, the clock counts only 46" " min.

And the clock has not been working for 7 hours: So, 12 hours have passed. So it is 12 noon.