Company is asking to pay the gross monthly salary for the balance notice period
I had resigned from my company (on probation) on the 29th of September 2022 and had informed the company that i would want an early release by serving 1 month / 30 days of notice period. The company initially denied early release but later approved for early release by serving 2 months i.e. 60 days of notice period. My last working day was 25th of November 2022 (as 26th and 27th November were holidays).
For the notice period the company released my salary only for 1 month and kept on hold salary of 1 month as per internal rules of the company. The company stated that they would release the salary after 45 days but they have not released the salary till date. When i inquired about it last week about my full and final settlement they stated that there is amount payable to them. I inquired about it the calculation and to my surprise they said that they have calculated my total amount due to them from me as my Gross Salary and the net amount adjusted is the net salary amount that is paid on monthly basis.
As per my understanding the employer can deduct only the basic component of my salary for the period which was waived off / reduced as buyout but they are claiming the entire gross monthly salary.
Need your help to understand if this is legal as to what they are claiming and under which law can i defend myself.