His demand is not bad as you can get a new manual one same day for 13 lacs.and a surf ssrg 97 costs around 16 lacs.
try and get a deal done with you paying 250k or him reg the surf for you (with him paying for reg)
Either way if the surf if good condition and original no touch up then a good deal.
try and bargain and save a few k's if you can