Ex-Executive Lathika Pai Sues Microsoft for Rs 35.3 Cr Over Workplace Hostility
A civil suit has been filed by Lathika Pai, a former Microsoft India executive, against Microsoft and its parent company, seeking Rs 35.3 crore in damages for an alleged hostile work environment which forced her to resign in what she has termed constructive dismissal.
Pai, who previously held the position of Country Head for Venture Capital and Private Equity Partnerships at Microsoft, resigned in July 2024. She alleges her exit followed nearly eight months of sustained harassment.
The matter came up before the Delhi High Court on May 7, where Microsoft’s counsel contested the jurisdiction of the court.
The case has now been transferred to a Bengaluru civil court and is expected to be heard there on June 9.
According to Pai’s petition, the alleged hostile treatment began after an internal probe was initiated into a Microsoft-led startup program she had led.
Microsoft launched the program 'Highway to a 100 Unicorns' in 2019 to support early-stage startups in smaller cities through collaborations with state governments.
While Microsoft reportedly received anonymous complaints in 2019 about vendor bias and financial discrepancies related to the program, an internal inquiry had cleared Pai of any misconduct. She was subsequently promoted in 2021.
The conflict started in March 2024 when a second investigation was launched by U.S. law firm Morgan Lewis & Bockius. Pai has alleged that this inquiry intensified the harassment she was already experiencing. She claims she was branded a "troublemaker" and excluded from key internal forums.
In addition, Pai has pointed to a 2020 cyberbullying incident involving her. While Microsoft had assured a thorough forensic probe at the time, Pai has alleged the company failed to follow through.
She has further claimed that Microsoft leadership had been sceptical about her work with state governments, which she believes contributed to the increased scrutiny and eventual breakdown of her professional environment.