Hi premarajanv,
Fatty liver can be the result of excessive alcohol intake, however it is also common to have fatty infiltration of the liver if you have any of the following: obesity or
overweight,
high cholesterol, diabetes. You at least have diabetes, which is a very strong risk factor.
You should have your liver enzymes checked with a
blood test, to see if you have inflammation on your liver as a result of the fat in your liver. If you indeed have inflammation, this can lead with time to cirrhosis or
liver failure (many years, depending on how much scarring there is within your liver).
There is no particular medication for treating fatty liver, and recommendations are to control your diabetes as much as possible, control cholesterol problems, lose weight through diet and exercise, avoid alcohol.