Floating a Pvt. Ltd. company during employment

Dear Sir, I'm working in a pvt. ltd. IT company in Kolkata for the last 2-3 years. Recently 3 months back, I had incorporated a company having similar objective and my employer come to know about the same from some source. I had not done any business with any of his client and also not using any of his product but the platform is same as he is using. I had given my resignation and now my employer is asking me to sign a Separation agreement mentioning the non competent clauses and also having clauses where he is saying that I can not work having similar product or services for 2 yrs as Is it a criminal offence. But during my employment I had not signed any such kind of agreement with my company except the appointment letter where these kind of clauses are not mentioned. I just wanted to know whether forming a company is a criminal offense or not if yes then what would be the penalties as I don't want to sign this agreement as it would be difficult for me to grow my business with these restrictions and also will restrict me to work for 2 years on same work.