if the FIR was lodged and reported over CPLC and Excise system have blocked it.
you will need an NOC from Police that vehicle is recovered not required in any case and has been returned to owner, With That NOC & FIR you approach the respective session court and obtain order mentioning the same.
OR
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if there was no FIR, no cplc/excise report. and only KATCHA report was there upon recovery.
relax & be at ease, cross check to verify from excise for clean to transfer, and goahead with sale.
try not to lie to new buyer., and put facts right honestly.