Company not relieving me for notice pay in lieu of notice period

Hi All,
I am working with my current employer from past 3 years, out of which more than one and a half year on current project where i am not getting anything extra apart from salary. All the expenses are being beared by myself and started facing financial issues regarding which I discussed with my director and manager several times and did not got any positive response. Finally, I started looking for job and now having an offer with me where the chance is of on site on joining itself but they want me to join within a week and notice period in my current company is 3 months. I put down my papers, discussed and requested to director, manager and HR in the same order. Now, my manager is not relieving me out of ego as I discussed with the director first rather than him and asking me to serve full 3 months. I am also ready to pay for the full 3 months notice period and leave but situation is the employer now saying that even if I pay they will declare me as absconded and hold my F&F, relieving letter and other documents. The company in which I have got the offer is ready for buyout and also ready to let me join in the current scenario.
1. Can there be any legal action from my current employer?
2. Can they hold my F&F, relieving letter and payouts?
3. If I join the new organization, will there be any chance that the current employer will impact in anyway?

In addition,
4. Can I take any legal action in the current scenario on my current employer like harassment or mental torture as they are making me miss this once in a lifetime opportunity considering my experience of 3 years?

You are bound by job offer and notice period conditions.
You cannot compel your employer to change or accept lesser notice, if they are not willing.
The company can show you as absconded and therefore terminated.
Will your new employer accept you without papers from previous employer?
Best will be to persuade your manager to accept early release and pay in lieu of notice.
Probably a tactful approach can help out but legal approach will not work out.
Your appointment order is categorical about 3 months notice period.
Nothing stops the company from taking legal action for breach of contract, though they may not do so.
You have no legal ground for going to court from facts mentioned by you onthe case.
Harassment, mental torture does not arise here, .just because they are not agreeing for lesser notice period.

Dear Friend,
Though you have mentioned about the notice period, but this does not give clear picture of exit clause mentioned in the appointment letter. Please reproduce the same verbatim for appropriate advice.
Warm Regards
Bharat Gera
HR Consultant
9322404765

How can I relieve the current employer without giving full notice period of 2 months.New employer is giving only one month time to join the company.I want to give one month notice period and one month's gross salary.what can I do.