At first I will load my Adsense Ad unit dynamically load using JS and randomly I’ll show it to user by overlapping the screen content on my website, can I do this? or Does this violate Google Adsense Policies?
I’m not sure about that, but it will certainly have a huge impact on your bounce rate.
I don’t know what you mean by “overlapping the screen content”, but if you mean what I would call “lightbox”, I suspect there is a good chance it would violate Adsense policies.
There are already “Lightbox ads”
My thinking is that if you are in effect turning one Adsense product into what might be a more “premium” Adsense product, and in doing so causes Google to loose out on income, it will not go well.
Of course, when in doubt, why ask here instead of contacting Adsense support directly?
I mean to say that in mobiles, ads will be shown which will overlap screen content which will be something as follows:
In the first pic (left-side) is the screen content, and on the second pic (right-side) is the AdSense Ad which preloaded and shown to the user in a randomized way.
I know Google provides a way to do something like that called Page-level Ads, but can we do that manually or does it violate it’s policies?
I did still haven’t got any reply, so thought to throw my doubt here! 
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