I received a offer letter from X company so resigned my current organization and serving notice period, all are going smooth but Seven days prior to my last working day HR called me and said that i got RED in bgv process due to a closed civil case in 2021
I'm not sure how i got RED in bgv process due to this! Is it possible? If Yes! is there any impact on our employment?
Need your suggestion/clarification on this!!

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If you got the offer in writing, they are on the hook. However, if the paperwork says "hire subject to successful background check" you are the one in the hook, I'm afraid.

Hindsight is 20/20, but unless I've cleared all of the hurdles required to be successfully hired, I'm not quitting my current job. Sorry I can't be more positive for you. I wish you well.

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100% agreed. Never ever quit your current job unless you already have a login and password at your new company, even if you have to overlap for a week or so. Better safe than sorry.

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It's legal

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I checked with with the HR regarding any update and to withdraw my resignation and I got a positive feedback like don't worry there is no delay in your joining date
But what if they say sorry after my last working day in my current organization?

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Don't know what RED is but I would get an attorney

Did your civil case result in any kind of DV, restraining, or anti-harassment order? Did this position require a security clearance?

OMG! That is ridiculous that was a flag in a background check! Personally I would lawyer up on that one, but make sure the attorney is willing to work for a piece of a settlement.

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