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I am planning to travel to Germany, Austria, Hungary then to Croatia and back to Hungary and return to India, I have valid Schengen multiple entry visa.

Is it allowed to go to Croatia from schengen area and return back schengen ara without additional visa to croatia or paper work ?

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Yes it is. Although Croatia is not (yet) part of the Schengen area, you are allowed to enter the country with a valid Schengen visa.

http://www.mvep.hr/en/consular-information/visas/visa-requirements-overview/

In fact, as you can see on the link above, even visas for Bulgaria,Cyrpus and Romania will grant you the same privilege.

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