BJT under saturation condition??

Under saturation condition base current is very large that voltage across Base-emitter junction of  silicon based BJT is more than 0.7 volt. In this condition the voltage at collector (Vc) is 0.2 volt.

By kirchoff's voltage law Vc=Vce( imagine emitter is directly grounded)
Vce =Vcb+Vbe.

If Vbe>0.7volt how Vce=0.2volt?
As Vce includes Vbe, it must also be more than 0.7 volt.
But it is 0.2 volt wich is less that 0.7 volt.

You're confusing Kirchoff's voltage law with his current.law. There are two independent loops to consider for the device, Vbe, and Vce. Ie=Ic+Ib as it should do.