No, employers cannot deny you the freedom and right to move to any firm if you decide to quit. Such restrictive terms in the contract are very problematic for employees and Indian courts have said that the protection of the rights of an employee seeking employment is more important than protecting the interests of the employer. If such a term is there in your contract, then you should talk to your employer. If your employer does not want to negotiate or remove such a term in your contract, then your only remedy is to go to court.
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