I have received offer letter from a Company but this letter includes below clause that "I have to pay company a month’s gross salary as penalty If I accept the offer letter and didn’t join them due to some reason, can they take any legal action against me. The CTC is good but I got time on my hands before joining due to this clause I wont be able to look for other opportunities also I have other things running parallelly. I don't want the time and effort I put there go to waste.

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Go ahead and accept it, you don't need to pay anything if you do not join. They can't do anything legally because that practice itself is not legal, you can decline offer anytime.

I don't think they can do anything such clauses are mainly to afraid people

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