I've managed to write an android app using it to trace user location and show it on the map using a marker. Here is the relevant code:
public class MainActivity extends Activity implements LocationListener {
public MapView mapView;
private LocationManager locationManager;
MyItemizedOverlay myItemizedOverlay = null;
Drawable marker;
public void onCreate(Bundle savedInstanceState) {
    super.onCreate(savedInstanceState);
    setContentView(R.layout.activity_main);
    mapView = (MapView) this.findViewById(R.id.mapview);
    mapView.setUseDataConnection(false);
    mapView.setClickable(true);
    mapView.setBuiltInZoomControls(true);
    mapView.setMultiTouchControls(true);
    mapView.setUseDataConnection(false);
    mapView.setFocusable(true);
    mapView.setFocusableInTouchMode(true);
    mapView.getController().setZoom(16); // set initial zoom-level, depends
                                            // on your need
    marker = getResources().getDrawable(android.R.drawable.star_on);
    int markerWidth = 1;
    int markerHeight = 1;
    marker.setBounds(0, markerHeight, markerWidth, 0);
    locationManager = (LocationManager) getSystemService(Context.LOCATION_SERVICE);
    locationManager.requestLocationUpdates(LocationManager.GPS_PROVIDER, 0,
            0, this); // You can also use LocationManager.GPS_PROVIDER and
                        // LocationManager.PASSIVE_PROVIDER
}
@Override
public void onLocationChanged(Location location) {
    int lat = (int) (location.getLatitude() * 1E6);
    int lng = (int) (location.getLongitude() * 1E6);
    GeoPoint point = new GeoPoint(lat, lng);
    mapView.getController().setCenter(point);
    mapView.getController().animateTo(point);
    mapView.invalidate();
    ResourceProxy resourceProxy = new DefaultResourceProxyImpl(
            getApplicationContext());
    myItemizedOverlay = new MyItemizedOverlay(marker, resourceProxy);
    mapView.getOverlays().clear();
    mapView.getOverlays().add(myItemizedOverlay);
    myItemizedOverlay.addItem(point, "myPoint1", "myPoint1");
    TextView tv1 = (TextView) findViewById(R.id.myLat);
    tv1.setText("Lat is " + lat);
    TextView tv2 = (TextView) findViewById(R.id.myLong);
    tv2.setText("Long is " + lng);
}
@Override
public void onStatusChanged(String provider, int status, Bundle extras) {
}
@Override
public void onProviderEnabled(String provider) {
}
@Override
public void onProviderDisabled(String provider) {
}
}
Now I need a way of getting latitude and longitude properties of a clicked location on the map. I mean I need something similar to the following code(which exists for google map api) in osmdroid.
google.maps.event.addListener(map, 'click', function(event) {
YourHandler(event.latLng);});
If you implement MapEventsReceiver you can use the singleTapConfirmedHelper() function which directly gives you a GeoPoint object of the clicked location. Here is an example:
public class MapActivity extends AppCompatActivity implements MapEventsReceiver {
    ...
    @Override
    public boolean singleTapConfirmedHelper(GeoPoint p) {
        mapController.animateTo(p);
        return true;
    }
}
You have to create an Overlay and override the onSingleTapConfirmed.
Try this:
Overlay touchOverlay = new Overlay(this){
    ItemizedIconOverlay<OverlayItem> anotherItemizedIconOverlay = null;
    @Override
    protected void draw(Canvas arg0, MapView arg1, boolean arg2) {
    }
    @Override
    public boolean onSingleTapConfirmed(final MotionEvent e, final MapView mapView) {
        final Drawable marker = getApplicationContext().getResources().getDrawable(R.drawable.markericon);
        Projection proj = mapView.getProjection();
        GeoPoint loc = (GeoPoint) proj.fromPixels((int)e.getX(), (int)e.getY());
        String longitude = Double.toString(((double)loc.getLongitudeE6())/1000000);
        String latitude = Double.toString(((double)loc.getLatitudeE6())/1000000);
        System.out.println("- Latitude = " + latitude + ", Longitude = " + longitude );
        ArrayList<OverlayItem> overlayArray = new ArrayList<OverlayItem>();
        OverlayItem mapItem = new OverlayItem("", "", new GeoPoint((((double)loc.getLatitudeE6())/1000000), (((double)loc.getLongitudeE6())/1000000)));
        mapItem.setMarker(marker);
        overlayArray.add(mapItem);
        if(anotherItemizedIconOverlay==null){
            anotherItemizedIconOverlay = new ItemizedIconOverlay<OverlayItem>(getApplicationContext(), overlayArray,null);
            mapView.getOverlays().add(anotherItemizedIconOverlay);
            mapView.invalidate();
        }else{
            mapView.getOverlays().remove(anotherItemizedIconOverlay);
            mapView.invalidate();
            anotherItemizedIconOverlay = new ItemizedIconOverlay<OverlayItem>(getApplicationContext(), overlayArray,null);
            mapView.getOverlays().add(anotherItemizedIconOverlay);
        }
  //      dlgThread();
        return true;
    }
};
mapView.getOverlays().add(touchOverlay);
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