I have read the article @ "http://csrajanadvocate.blogspot.in/2013/10/bond-is-illegal.html", it explains that such contracts are not valid to the extent of such clause.
I also read from some other source, which I am unable to cite at the moment, that at most only the training expense or such other expenses which were directly attributable towards the employee could only be recovered and not just any amount specified in the contract.
Say, for example, one of the clauses stipulates that if the employee leaves the employment earlier than completion of 2 years from his appointment then he shall be liable to pay Rs. 2,00,000 or say amount equivalent to "X" month salary". Then if the employee leaves prior to the completion of the stipulated time then he is not bound to pay that much amount, but the amount specified, or the manner of the determination of the amount is the maximum amount which can be recovered from him.
Further, the amount of compensation is to be determined by the court, which normally is the amount of training and other directly attributable expense.
Please elucidate on the subject matter.