Which version of CQ5 are you using? /var/dam was present till CQ 5.4; in CQ 5.5 and newer you don't need anymore /var/dam and the sync to /content/dam.
For my current project I am using CQ5.4
IS there any specific reason for copying in to var/dam? why cant you create asset directly in content/dam?
Create Asset instead of file. Use Asset Manager API for creating asset .
In versions <= 5.4, a content upload actually saves to /var/dam first (temporarily) and then the asset synchronization workflows kick in to extract metadata and save those to /content/dam.
Veena, do you have permission restrictions on /var/dam and /content/dam for the user you are using for saving to those places? I'd check those as those might be failing to write to crx. Also, check that your asset synchronization workflows are enabled and working (upload via CQ5 dam using the same user and see if that is working correctly).
I am moving it to var/dam since a launcher is exisiting for that. Otherwise i hve to create the entire structure in content/dam.
There is no restriction. Actuallly when i copy my file to var/dam ;the launcher is being executed and the file is been created as DAM Asset in content/dam. But , may be because i copied the file from my page node ; it is missing some properties needed for meta data extraction i guess. COuldn't figure out what exactly is happening