Thank you for your suggestions and reply.
Please find a video of my uBitx. You can see the wiring and the adapter board there too.
The adapter board is just as per the https://ubitx.net/fix-tda2822-audio-amp/
I have added soldered an IC socket on the uBitx board after removing TDA2822 IC.
On top of that I have created an adapter board which extends the pins and I have placed a LM386 and the connected the pin to pin mapping as suggested in above link using magnet wire.
(Just note my uBitx was giving same symptoms before I changed the IC . i.e it was receiving local broadcasts before IC replacement too).
I have connected an EFHW (newly constructed ) antenna to the ubitx. I have not properly tuned it yet. Just constructed as per http://www.infotechcomms.net/downloads/Multi_band_EFHW_spool.pdf
uBitx is inside a metal box as you can see in the video. I have extended the LCD. (But there is no if I connect the LCD directly.
I have attached images of adapter and ubitx too.
I tried adding .1uf ceramic cap to LM7805. But it did not work.
About the radio station, I believe it is 7-8 KM s far from my QTH.
I am really having tough time to setup my HF rig. Initially I had issues with putting the antenna as my apartment association was not allowing me. Now as that issue resolved, TDA2822 blew, and now this local broadcast overshadowing issue.. Huh..
I will definitely try to make a HPF as suggested by OM WA0ITP but thats definitely going to take some time as I don't have the required parts.
Please have a look and suggest where things are going wrong.