if he has got all the legal documents regarding theft like copy of FIR, Sapurdari, lab report etc then its 100%legal car. there is no problem in buying such car for use but not for the resale. i was having a civic 97 used it around 10months and then sold it last month. no police wala can bother u for documents if u have all of them. the market value of the car u stated is not more than 200000