Former Microsoft India executive Lathika Pai has filed a ₹35.3 crore civil suit against Microsoft and several of its senior officials, alleging that she was forced to resign due to a hostile work environment. Pai, a prominent figure in India’s startup ecosystem and former Country Head for Venture Capital and Private Equity Partnerships at Microsoft, claimed procedural unfairness and “constructive dismissal” in her departure from the company in July 2024. She alleged facing eight months of harassment and intimidation following an internal investigation into a flagship Microsoft startup initiative she led.
Jurisdiction Dispute and Second Probe Deepen Microsoft–Lathika Pai Legal Row
The case was initially heard in the Delhi High Court on May 7, but Microsoft’s legal team challenged the jurisdiction, and the matter was subsequently transferred to a civil court in Bengaluru. The next hearing is scheduled for June 9. Pai is seeking compensation for mental health deterioration, reputational damage, loss of income, and emotional distress.
The controversy centers around the “Highway to a 100 Unicorns” initiative, which Microsoft launched in 2019 to support early-stage startups in smaller cities in collaboration with state governments. In late 2019, the company received anonymous complaints alleging vendor favouritism and financial irregularities tied to the initiative. An internal investigation cleared Pai of wrongdoing, and she was even promoted in 2021. However, in 2024, Microsoft initiated a second probe led by US law firm Morgan Lewis & Bockius.
Pai Alleges Policy Breaches and Bias in Microsoft’s Internal Probe
Pai has alleged that the 2024 investigation violated internal policies—she was denied access to complaint transcripts, and interviews were conducted without recordings. She further claimed that when she raised concerns about these irregularities, she was labelled a “troublemaker” and excluded from important company forums. Pai also accused Microsoft of bias in its partnerships with state governments and criticized the company for not adequately addressing a 2020 cyberbullying incident. Pai has been a key advocate for women-led ventures and inclusive innovation in India’s tech space, having also founded JobSkills and SonderConnect.
Summary:
Former Microsoft India executive Lathika Pai has sued the company for ₹35.3 crore, alleging forced resignation due to a hostile work environment. She cited unfair internal investigations, mental and professional harm, and bias in government partnerships. The case, now in a Bengaluru civil court, resumes on June 9.
