My project lead just informed me that they can’t fund my current position and I should search for another role. My department head also mentioned there aren’t any other openings for me. Can they legally ask me to leave the company?

Indian law does not mandate an employer to offer an alternative role to an employee whose position is being eliminated. However, if your employment contract specifies a specific duration or termination clause, those terms would apply. You should review your contract and consult with an employment lawyer for specific guidance.