pankaj, if you don't want 5.1, why do you want an AVR? why don't you get a nice quality stereo amp and a pair of floorstanders? or even a nice stero amp and a pairof bookshelves?
the CA 340A (14k) or CA 340A SE (16k) are good budget stereo amps. add 11k and you can get a pair of wharfedale diamond 9.1 bookshelves. Once again full disclosure, this is a combo I am planning to buy somewhere down the line, and I am looking for guinea pigs!
I did hear about Sonodyne introducing a "soundbar" called the ex-bar, which you could consider if it is within your budget (no idea of the cost as of now)