Post Employment Restriction

I have resigned from my job couple of months back from sales division, and now I want to start my own business with the experience and the contacts I
have with the same type of products.
But my offer letter which I had signed on joining of the co. states a
clause as mentioned below:
You, in event of leaving the employment of the company,shall not for a period for 12 months from the date of such relinquishment enter into the business identical to or competitive in nature.to the business of the company. In event of you violating the said terms the company shall be entitled to initiate / criminal proceedings charges for the recovery of the entire business losses suffered by them at present and in future as the damage from you which you acknowledge and accept.
Is this clause valid or should be ignored ?
Kindly suggest.
Prem

Hello Prem,
As far as my knowledge, this clause is purely valid, and can only be ignored if you think your new business will not be observed by your ex employer.

Clause is valid. You cannot start a similar line of business as that of your company, for another 10 months

Dear Prem,
It's all in the business. Even your erstwhile co. also would have started in the same way. Don't worry. If you'll have no other option, better ask your wife or relatives, friends to do this, you can assist them. There ends the matter.