Lawyers for hit-run driver Puneet Puneet say their offer to Victoria's attorney general that he will return to Australia from India if prosecutors guarantee a maximum two-year sentence is being "discussed".

While saying they had not received any official response from Victoria's Acting Attorney-General Gavin Jennings or the Canberra government, lawyer Kanhaiya Kumar Singhal said they knew their offer was the subject of meetings.

"It will take a matter of time, but we know there are discussions in Australia", Mr Singhal told reporters outside a Delhi court on Monday.

ndian hit-and-run driver Puneet Puneet has cried out and sobbed at an extradition hearing in New Delhi. Picture: Supplied (Supplied)

Asked whether that could mean the extradition request might be dropped, he said: "Not dropped as that would technically be grounds for surrender. But opposing parties could well sit down and negotiate."

Puneet was a 19-year-old learner driver when he killed student Dean Hofstee in Melbourne in 2008.

He fled to India while out on bail but was arrested five years ago on his wedding day and has been facing drawn-out extradition hearings to determine if he should be sent back to Melbourne.

Last week, in response to Mr Singhal's request, Mr Jennings said that Victoria's courts would decide on the appropriate punishment.

The family of 19-year-old Dean Hofstee, father Peter Hotfteel (right) and brother Quinton Hotfteel outside court in Melbourne, Thursday, Aug. 20, 2009, after Puneet Puneet, 19, was issued with an arrest warrant for killing Dean Hofstee (AAP)

"Puneet Puneet needs to return to Victoria to face the consequences of his actions, and we won't rest until justice is served," he said.

In court, Mr Singhal reprised legal arguments according to extradition laws, including the absence of a motive in what he claimed was his client effectively being tried for murder, rather than a drink-driving accident.

"Even a terrorist has a motive when he blows something up", said Mr Singhal.

"Though maybe I should'nt be quoted as saying that as the media is here.

"But the point is my client did not have any motive or forethought to make this a culpable homicide as opposed to a tragic accident."

Puneet Puneet walks into court in New Delhi in 2005. (AAP)

Mr Singhal said Puneet was concerned he would not be given due justice in Australia and had been told in 2008 he would be given a sentence of 20 to 30 years.

Puneet's defence has delayed proceedings multiple times in the case, which has dragged on for nearly four years through the Indian courts.

Puneet is due to face court again in Delhi on August 13.