I have done diploma in electronics and telecommunication engg. In Mumbai and now I want to get B.E/B.Tech degree in my field. I want to know that whether we can get admission directly into second year of B.E/B.Tech and on what basis do diploma holders get admission into B.E/B.Tech. I also want to know that after doing diploma in Mumbai if I want to continue my further studies in Hyderabad would there be any problem?

You are thinking of an Associate degree to get admission into the second year of a Bachelors degree program. A Diploma is a lower level than an Associate degree and many cases won't transfer. I've known people that have tried.