Q: Is there a framework for developing MVC applications in java EE?
Java EE inherently includes MVC framework called JavaServer Faces (JSF). It consists of business layer usually represented with EJBs (Enterprise Java Beans), JPA and DAOs as a model, XHTML pages with Facelets tags as a view and FacesServlet as a controller. You can also have a look at Spring and Struts MVC frameworks.
Q: What is the similar(suitable) framework for EntityFramework in java? (is hibernate possible?)
Java EE comes with JPA which stands for Java Persistence API. There are few implementations of this API, Hibernate that you mentioned is one of the most used. Hibernate started as a separate project aimed to bring ORM to Java world, and recently included full JPA support. However, Hibernate brings its own annotations and methods that make this implementation more powerful but if you rely on them, you cannot easily switch later to some other JPA implementation. Default JPA implementation is called EclipseLink (previously known as TopLink).
Q: Can web services also be implemented like in .NET MVC as well?
Yes. JAX-WS specification and Metro implementation aim to gain interoperability with other Web service frameworks such as WCF that you are probably familiar with. You start with either WSDL or your Web service code and generate the code/WSDL using the tools provided. There is also JAX-RS which is suitable if you like to build RESTful Web services.
See also: