Vehicle Registration

I sold my vehicle one year back to one of the dealer who in turn sold it to some other dealer in Nashik, this dealer in Nashik is not ready to transfer the vehicle and he is claiming that I have sold him accident vehicle, I have sparsely used this vehicle only for short period of 8 to 12 months and without making any damage, it may be possible that the owner who sold me this vehicle have sold me faulty vehicle without my knowledge. now the issue is that the vehicle is still under my name, is there any procedure I can do to avoid any problem which I may surface in future? the second and first dealer is asking for compensation from me for selling accident vehicle.