At least I found this Free website where I am able to post my own ads with pictures of the stuff I want to sell. To my surprise it did not ask me to register and was published immediately. Highly recommended for those who are looking for 2nd hand stuff or want to sell. It is called Merisale.com
There are numerous categoires and subcategories and everything is arranged in a easy to follow structure. Selling of personal and business goods is allowed. One can even sell services or offer services. It is quite comprehensive and covers all of Indian cities as well as states. Even the services covered are comprehensive.
Current news snippets are a plus which get updated frequently.After a few ad submission I got a feeling that this is the way we should be able to plan the sites for classified ads as the information is retrieved so easily by city wise or category wise menus.
Last word, its FREE!