Can you post some photos of your current peg and lever setup, both sides of the bike? From what you describe it sounds like the bike has non standard pegs and shift lever (and likely brake pedal too.)
I put GPz pegs and levers on my 750E, which include a linkage type shift lever, which moved the pegs a little bit rearward. It was a bolt on swap so conversely you should be able to bolt on stock replacement parts to return your bike to original.
BTW, I've got the full stock setup sitting in a box if you are in need. The peg brackets were repainted and I've also got a NOS brake lever with shinny chrome. Send me a PM if you want to discuss obtaining these parts.
Those look like GPz pegs and levers. The stock bike doesn't have a threaded boss for the shift lever pivot so the sprocket cover needs to be drilled and threaded. Just guessing but it looks like someone botched the job and they they welded the cover for a second attempt. Sprocket covers are dime a dozen so your options are buy another and thread it properly or ditch the rearset pegs and buy some regular ones w/levers.