Im no expert but this is what my knowledge says.
About ur first question.
I think such car cannot be sold, as the law says the transfering of a car is a liability of the previus owner, altho in many cases the new owner transfer the car but even in such cases the previus owner has to get a duplicate book made.
As for a duplicate book there are loads off hassles to,
F.i.r
Add in the news papers and God knows what.
About the rishwat question.
Its us that pay them (we are so lazy that we dont want to do our work on time and on the last day we claim there are always big lines at goverment offices).
Secondly our goverment employess and the goverment has made such a system so that each and every indivisual keeps getting khuaar (moving from one countr to another or in other cases find parking for half an hour and then get your work done.
In some cases ur bound to pay them as ur office and Goverment office timing or time taken there is as such that you cannot compensate that.
And you consider paying bribe as saving time.