Brother its a simple case of police mishandling the case.
My new Corolla was stolen in 2009 all you had to do is to report the FIR yourself by indicating exact time date and location and how the car was stolen with possible description of thiefs. Second you will inform the insurance company and Bank if its leased and insured.
Once the FIR is lodged then CPLC and ACLC is alert and will try to find the stolen vehicle. You also give an AD in newspaper.
After some time (month or so) if they are sure that its not recoverable Police will issue a letter that car is not recoverable.
Insurance company will give the claim to you or Bank as the case maybe for the sum insured and you will lose money for registration, taxes and aftermarket accessories installed.
In the current scenario police has misreported the FIR to drivers so that they donot have to search the car and they can beat the drivers to death for money.
You should have change the FIR ASAP to reflect how the car was really misplaced or stolen.