A. You would better write a mail to the management to get immunity through negotiation from the 3 month mandatory notice period, If no use, you are liable to pay the damages in accordance with the terms and condition of the appointment order or company policy.
B. Where there is rule there is a punishment for the breach of the law, you can breach the contract by paying the damages to the management. However, the management has no right to retain even after payment of the damages as per the agreement. Thereafter, you should issue a written notice to the management by communicating about further development and requesting your relieving letter.
C. Once you agreed by entering into contract that you are liable to compliance the same. However, you can come out by paying the damages as clinched by earlier point which is conferred alternative remedy in the terms and conditions of the appointment order. Thereafter, if your employer intentionally dragging your case to issue relieving letter that you can approach the labour court by issuing lawyer notice to the Management, HR and Reporting Manager.