1. Police is playing errant, not uncommon when accident happens.
2. Apply to the court to release your vehicle.
3. Since the vehicle is taken into custody, a case is definitely registered.
4. You have to apply in the case generally before the Chief judicial Magistrate to get the vehicle released on furnishing a Bond.
5. Arrest of driver has nothing to do get back the vehicle from police.
6. No need for separate FIR as the police is bound to run behind in the same case which must be registered as the vehicle is seized.