i dont think now you can do anything against the vendor and even if you do it will be an exercise in futility
before proceeding to register the sale deed in your favour, did you even take inspection of the original title chain documents?
if you did not then you are equally responsible
since the old sale deed is lost, it would be prudent to file the FIR since an FIR can be filed by anybody and not necessarily the vendor has to file such FIR. In this case since the property has been sold to you, you can all the more file the FIR as required by the bank
also please issue the public notices in newspapers
at the highest you can file a suit against the vendor to recover the expenses that you had to incur for filing the FIR and publishing the newspaper notice. however the cost of such suit would be far more than the money sought to be recovered
so what has happened has happened. now no use escalating the issue any further
now you have to comply with the lender's requisitions so that your loan is sanctioned. so plz spend your energy on that
i understand your ordeal and the vendor is wrong. but here the circumstances are such that doing anything is like a fait accompli