Lathika Pai, a former Microsoft India executive, has filed a civil suit against the tech giant seeking Rs 35.3 crore in damages. Pai alleges she was forced to resign in July 2024 due to a hostile work environment, retaliation, and procedural unfairness, amounting to what she calls “constructive dismissal.”
Pai, known for her work in supporting India’s startup ecosystem, particularly women-led ventures, served as Microsoft’s Country Head for Venture Capital and Private Equity Partnerships. The lawsuit centers around a flagship startup initiative called “Highway to a 100 Unicorns,” launched by Microsoft in 2019 to support early-stage startups in small cities through collaborations with state governments.
In late 2019, Microsoft received anonymous allegations of vendor favouritism and financial irregularities related to the initiative. An internal probe reportedly cleared Pai of wrongdoing, and she was promoted in 2021. However, a second investigation was initiated in March 2024, led by U.S. law firm Morgan Lewis & Bockius.
Pai claims she was denied access to original complaints and transcripts from the first investigation. She also alleges that a key interview in April 2024 was conducted without recording, against Microsoft’s stated policy. Her objections to this process, she says, led to further hostility from the company.
Former executive’s legal battle with Microsoft
The lawsuit also references a 2020 cyberbullying incident, for which Pai claims Microsoft promised, but failed, to conduct a proper forensic investigation. She further alleges that Microsoft’s leadership unfairly viewed state government partnerships with suspicion, reflecting a bias that she believes fuelled the scrutiny she faced.
After nearly eight months of what she describes as harassment, Pai resigned in July 2024, citing damage to her mental health, reputation, and professional standing. She is now seeking compensation for loss of income, emotional distress, and reputational harm. The Delhi High Court heard the matter on May 7, where Microsoft’s legal team challenged the court’s jurisdiction.
The case will now be heard in Bengaluru on June 9. This case adds to growing concerns about corporate accountability, internal investigations, and the challenges faced by senior women leaders in global tech organisations. If Pai wins the suit, the court may order remedies such as reinstatement, back wages, compensation for emotional distress, or other damages.
Microsoft may also face reputational damage and scrutiny of its HR practices.