Lathika Pai, a former Microsoft India executive, has filed a civil suit against the company seeking ₹35.3 crore in damages. Pai alleges she was forced to resign due to a hostile work environment. The case was heard by the Delhi High Court on May 7.
Microsoft’s legal team challenged the court’s jurisdiction. The case was referred to a civil court in Bengaluru. The next hearing is scheduled for June 9.
Pai served as Microsoft’s Country Head for Venture Capital and Private Equity Partnerships. She championed several women-led ventures in India’s startup ecosystem. Pai resigned from her position at Microsoft in July 2024.
She cited eight months of intimidation and harassment following an internal probe into a flagship startup initiative she led. Pai stated that the hostile work environment had damaged her mental health, reputation, and professional standing.
Lathika Pai files lawsuit
She is seeking compensation for loss of income, emotional distress, and reputational harm. Pai had led the venture “Highway to a 100 Unicorns,” launched by Microsoft in 2019. The initiative aimed to support early-stage startups in small cities in collaboration with state governments.
In late 2019, the company received anonymous allegations of vendor favoritism and financial irregularities. This led to an internal investigation. Pai was cleared of all charges and was promoted in 2021.
However, in 2024, a second investigation led by US law firm Morgan Lewis & Bockius was launched. Pai claimed she was denied access to key complaint transcripts. She also said an interview was conducted without recording, which she says was against company policy.
When Pai raised these issues, she said she was labeled a “troublemaker” and was removed from key forums. She also accused Microsoft of treating collaborations with state governments with bias. Pai said the company did not properly address a cyberbullying incident in 2020.