I see two issues in your post. One is dilly-dallying that your future employer is doing in completion of the recruitment process. Another is leakage of information to your current employer about your job search. You feel that you have been caught in pincer.
As far as your future employer is concerned, nothing can be done. Even if they provide a proper Offer Letter, I recommend you to reconsider whether to join or not. This is because they started blowing hot and cold when recruitment process was about to complete. This is unprofessional behaviour. Therefore, unless you know very well about the internal work culture of this company, I recommend not joining them.
Coming to the disclosure of your job search to current employer. Go and talk to HR. Tell them that it is important to climb on a ladder of career. One cannot stagnate at the same place. The way people leave some other company and join them, same way they will leave them to join somewhere else. Opportunities do not come frequently. These need to be grabbed with both the hands when one comes across with them. Assure them that your job search has not diluted your loyalty in any way. You will render your duties to the best of your capacity till your last working day.
Lastly about disclosure of information to your current HR or Employer. You need to find out how this cat has come out of the bag. Did you do some loose talk? Did you pass on this information while talking on mobile and someone overheard it? Did you use your official e-mail ID to send your CV? There has to be some reason. You need to take a lesson and ensure that this information does not leak out till a right time arrives.
7th November 2016 From India, Bangalore
My current HR and CMD wants to discuss the reason for going for an interview..
So as far as the new organisation is considered, it is highly unethical and unprofessional attitude and behaviour they have adopted..
I have taken a lesson.. But deep down a sense losing on professional grounds..
8th November 2016 From India, undefined
If your CMD and HR have called you for discussion to understand why are you looking out for opportunities outside the current organisation, then it could be blessing in disguise. You may turn, leakage of information, which was adverse situation, into an opportunity.
I have specified why employees look for career opportunities outside the career organisation. However, when it comes to meeting, you need to prepare list of the points on which discussion could take place. You need to tell them in what field you are looking for the job enlargement and how this job enlargement could hand in hand with salary enlargement as well.
CMDs are seasoned negotiators. Therefore, be prepared for a career ploy. They could assure you any of the following:
a) Promotion + salary hike
b) Only salary hike
c) Change of department within the company, relocation to some other station etc
d) Any of the above mentioned option plus agreement for lock down period with the current company
While giving any concession, they could take concession from you as well. Therefore, be prepared for the concessions that you might have to give.
Possibly they may give you some threat which is cloaked with concession. Therefore, their position could be "either take what we give else face adverse consequences". You need to be ready for this scenario as well.
All the best!
8th November 2016 From India, Bangalore