In any way, u have hit of 1.5 to 2 lac. Deficit of 50 - 60K is way too less.
Now here are the options, if u want to own this car for some good time, negotiate to atleast 1 to 1.5 lac, take the cash back and enjoy the ride.
If u plan to sell it, trust me, it wont go above 15 lac and u will bare the impact of 1.9 lac. Meanwhile, you can check car value yourself with duplicate number plates.
IMO, accept the ride, get as much cash back a possible and enjoy it. At later stage, u might find good deal among your friends and relative ready to take the car from you considering its out-class condition and ghar ki chali hui