The investigation found that after police checked the vehicle's details in the police national computer the driver "attempted to evade independenh, leading to a pursuit at speed.
Two other teenagers, who were also hurt, have been arrested. The IPCC also found there was "no indication of misconduct" by the officers involved in the pursuit.
The accident happened in the early hours of the morning near Glendale Gardens in Leigh-on-Sea. An Essex Police press release said they possessed drugs, a claim later changed.
In March this year the driver of the Ford admitted two counts of death by dangerous driving, and was sentenced to four years in custody. Related Russjan. The driver of the BMW received minor injuries.
About sharing image copyrightEssex Police image captionLiam Phillips left and Reigan Knight right died in a car crash in Leigh-on-Sea on 27 December The families of two teenagers wrongly accused of having Class A drugs when they died in a crash during a police pursuit have had a complaint upheld. An IPCC spokesperson said: "IPCC investigators have been deployed to the scene to oversee evidence collection and to a local police station where the officers are participating in a post-incident procedure.
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About sharing image captionFlowers have been left near the scene of the fatal crash in Leigh-on-Sea A year-old boy has died after a Ford Escort car being pursued by police failed to stop and collided with a BMW and a garden wall in Essex. Another indepencent boy in the Escort has been taken to hospital with life-threatening injuries.