This should be the complete answer. As suggested by @GDanger .
Extend WebView to override the scroll methods and embed the custom webview within layout xml.
public class ScrollDisabledWebView extends WebView {
    private boolean scrollEnabled = false;
    public ScrollDisabledWebView(Context context) {
        super(context);
        initView(context);
    }
    public ScrollDisabledWebView(Context context, AttributeSet attributeSet) {
        super(context, attributeSet);
        initView(context);
    }
    // this is important. Otherwise it throws Binary Inflate Exception.
    private void initView(Context context) {
        LayoutInflater inflater = (LayoutInflater) context
                .getSystemService(Context.LAYOUT_INFLATER_SERVICE);
    }
    @Override
    protected boolean overScrollBy(int deltaX, int deltaY, int scrollX, int scrollY,
                                   int scrollRangeX, int scrollRangeY, int maxOverScrollX,
                                   int maxOverScrollY, boolean isTouchEvent) {
        if (scrollEnabled) {
            return super.overScrollBy(deltaX, deltaY, scrollX, scrollY,
                    scrollRangeX, scrollRangeY, maxOverScrollX, maxOverScrollY, isTouchEvent);
        }
        return false;
    }
    @Override
    public void scrollTo(int x, int y) {
        if (scrollEnabled) {
            super.scrollTo(x, y);
        }
    }
    @Override
    public void computeScroll() {
        if (scrollEnabled) {
            super.computeScroll();
        }
    }
}
And then embed in layout file as follows
<com.sample.apps.ScrollDisabledWebView
    android:id="@+id/webView"
    android:layout_width="match_parent"
    android:layout_height="match_parent"
    android:layout_centerInParent="true"
    tools:context="com.sample.apps.HomeActivity"/>
Then in the Activity, use some additional methods for disabling scrollbars too.
ScrollDisabledWebView webView = (ScrollDisabledWebView) findViewById(R.id.webView);
webView.setVerticalScrollBarEnabled(false);
webView.setHorizontalScrollBarEnabled(false);