Reports are abuzz that Bollywood youngsters - Arjun Kapoor and Alia Bhatt, were spotted as a couple at Arjun's uncle Sanjay Kapoor's party.

The duo who are filming "Two States" together is believed to have grown closer during the shoot and has been spotted several times togeher. 

According to a DNA report, onlookers at the party noticed that the pair seemed very comfortable with each other and would mostly disappear on the pretext of making calls.

Adding fuel to the fire, Alia was Arjun's only co-star to be invited to the party which otherwise was strictly for family and friends. And when Alia was leaving the party, she was courted to the car by Arjun himself.

A source present at the party revealed, "The Kapoor family is aware of this budding relationship, which is why Alia was present at the party. She came as Arjun's plus-one. None of Arjun's other co-stars like Priyanka, Parineeti and Anushka were present. It was strictly a family and close friends affair, so Alia's inclusion is the writing on the wall," and added, "Even the Bhatts are aware of this love story and they approve."

Another website reported that Arjun and Alia's budding relationship has grown deeper as the actress was pictured bonding with Arjun's sister Anshula Kapoor. It also reported that Arjun's ex flame Arpita Khan was heard confirming the news to a friend.  

The young pair has also been spotted in many occasions together right from the "Yeh Jawaani Hai Deewani" screening to the hunk's birthday bash, where the pair took off together after the celebrations.

Even recently, Arjun was seen dropping his lady love to the 'D Day' premiere show, post which he went to shoot for 'Gunday'.

The couple as of now has not revealed their status yet and the young Kapoor lad seemed hesitant when asked of his equation with fellow co-star Alia.

"Alia is my co-star in Two States so we have become friends and end up attending parties and events together the way friends do," DNA quoted the "Ishaqzaade" star as saying.

Until recently, Alia was rumoured to be dating her "Student of the Year" co-star Varun Dhawan with reports even suggesting that Varun used to accompany Alia in script readings as well.