After a lot of research and hearing out different 5.1 systems in the friend's homes I have come to the decision about the best 5.1 system in the market. But before you jump to that here is a list of other 2 that cave it a competition.
3. Creative T6100
This is for surround sound on the budget. Enough sound for an average sized room but anything larger will not get good sound from the underpowered sub. At Rs 4000 ($ 85 approx) this is the speaker to go for if you are on a budget.
2. Logitech X 540
Similar specs as the above but a much more refined sound and a powerful bass. This costs more than Rs 5000 ($ 100 approx). If you have extra Rs 1000 to spare then go for this over creative t6100.
1. Altec Lansing 5051
At approximately $ 200 (Rs 10,000) this one has to be heard and only then will you know why the price is high. A much rich and deep sound along with a good sound stage, this is the speaker set to go for if you have the cash.
It is to be noted however that some of the other 2 speaker sets with a sub woofer can give a some what better sound than these. Speakers like Klipsch are recommended. A speaker set combination 2 2.1 sets can also be made to give a surround sound effect which may sound better and be cheaper than the speakers listed here.