Hi SmartAss,
Welcome to HFV.
Well with that budget, you can get a nice decent stereo system....since you are based in Mumbai....go and audition the many systems available with the countless dealers we have in Mumbai....concentrate on getting nice speakers....make sure you don't reveal the actual budget you have.....
Amps like Anthem, Arcam, Rotel, Marantz, Denon etc. etc. are good for stereo.....speakers like Focal, B&Ws, Jamo (Concert Series), Polks (RTi / LSiM), KEFs, Wharfedale, JBLs etc
Carry your music and go to dealers...say you are ready to spend around 2.5 lacs + or - 50k....keep the 2 lacs as buffer and after you get quotations...ask for prices of little higher models...
Once you have shortlisted the amps and speakers...share for our views, we will try to advise you the best guidance possible.....
Whats the length / specs of the listening area? Hall?