A) Since police has not filed chargesheet till date and I have not been arrested, can they move to court to get an order of my arrest?
If the police feels that arrest is not necessary in the case before them, then it is the discretion of police.
Section 41A deals with cases not covered under Section 41 (1), wherein a police officer is directed to issue a notice and not to make an arrest unless the noticee after receiving notice does not comply with the terms of notice or complies once and then flouts it subsequently. If the notice complies with terms of notice, he may only be arrested for the offence concerned for reasons to be recorded in writing by the police officer.
The accused is rendered some fundamental right w.r.t. procedural law as well apart from substantive rights under Article 20.
B) What are the options before me to safegaurd myself legally?
You have to first obtain anticipatory bail and challenge the case properly in the trial court.
C) Which will be better option - go for quashing after AB from high court or fight the case in lower court on merit (case has no merit at all)?
First obtain AB, wait for the police to file charge sheet, if you feel that the case cannot be challenged in the court owing to the time taken, you may chose to go for quashing the case which has less chance to get quashed because high courts do not entertain them as a routine.