Anything wrong with using http://ebay.in ? From memory they bought out India's largest online auction and incorporated into the Ebay family.
eBay.in is the india specific site of eBay. Why do you need an eBay like site, when you have eBay itself?
ebid.net is NOT purely indian in the sense that even in the indian version as well, they are using pound for all the references and just using currency conversion. Indians are just NOT much into all this ebay stuff right now I guess.
This kind of business may become very difficult to manage...I remember a case where one of the school kids have put a home made porn for sale and the case has become very large that the owner of site was arrested on the charges of spreading porn........i think it's very difficult to moderate the site so well...so only biggies like ebay could handle it .
Trademe.nz was established in this fashion. The dude wanted a 2nd hand heater because he was cold and poor and he couldn't find any on ebay.. sold for about 500m i think (the site that is.. not the heater).