Can I Start My Own Business Despite a Non-Compete Clause in My Job Contract?

I have resigned from my job a couple of months ago from the sales division, and now I want to start my own business with the experience and contacts I have in the same type of products.

However, my offer letter, which I signed upon joining the company, includes a clause as mentioned below:

"You, in the event of leaving the employment of the company, shall not for a period of 12 months from the date of such relinquishment enter into a business identical to or competitive in nature with the business of the company. In the event of you violating these terms, the company shall be entitled to initiate criminal proceedings and charge for the recovery of the entire business losses suffered by them at present and in the future due to the damage caused by you, which you acknowledge and accept."

Is this clause valid, or should it be ignored? Kindly suggest.

Regards,
Prem

To the best of my knowledge, this clause is entirely valid and can only be disregarded if you believe that your new business will not be monitored by your ex-employer.

Validity of Non-Compete Clause

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