Can My Company Force Me to Stay for 3 Months Despite Offering to Pay Notice Period?

It is written in the Appointment Letter that “Services may be terminated by giving 3 months' notice or compensation (Basic Salary) in lieu thereof by either side.” I have submitted my resignation letter on 30.11.2020, stating that my last working day will be 05.12.2020, and I will deposit the remaining amount to the company as per the policy. However, my company is not providing me with a relieving letter and is insisting that I stay for 3 months. Is this correct? Please help me understand how I can leave this company peacefully.

You may approach the HR department representative, quoting the above clause of separation in your appointment letter, and express your willingness to buy out the notice period. Seek their assistance for a smooth and respectful exit from the company.