Former Microsoft India executive Lathika Pai filed a civil suit against the company and its senior officials, seeking ₹35.3 crore in damages, alleging that she was forced to resign due to a hostile work environment, reported The Financial Times.
Pai, who is a veteran in India’s startup landscape, stated that there was procedural unfairness involved in the “constructive dismissal.”
The case was heard by the Delhi high court on May 7, however, after Microsoft’s legal team challenged the court’s jurisdiction, the matter was referred to a civil court in Bengaluru. The next hearing in the matter will take place on June 9.
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Lathika Pai served as Microsoft’s Country Head for Venture Capital and Private Equity Partnerships and also championed several women-led ventures in India’s startup scene.
Pai founded ventures like JobSkills and SonderConnect, and has been a vocal advocate for inclusion and innovation in India’s startup sector.
She resigned from her position at Microsoft in July 2024, stating that she had faced eight months of intimidation and harassment following an internal probe into a flagship startup initiative led by her.
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Pai stated that she had suffered damage to her mental health, reputation, and professional standing and was seeking compensation for the loss of income, emotional distress, and reputational harm she underwent.
Internal investigation into Lathika Pai’s venture
Lathika Pai had led the venture “Highway to a 100 Unicorns,” which was launched by Microsoft in 2019 to support early-stage startups in small cities in collaboration with state governments.
In late 2019, the company received anonymous allegations of vendor favouritism and financial irregularities, leading to an internal probe being launched against Pai, reported The Financial Times.
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Pai was cleared of all charges and promoted in 2021. A second probe was launched in 2024, led by US law firm Morgan Lewis & Bockius.
Lathika Pai stated that she was not allowed access to key complaint transcripts, and an interview had been conducted without recording, going against company policy. She stated that when she pointed out these issues she was labelled a “troublemaker” and was removed from key forums.
Pai also accused Microsoft of treating collaborations with state governments with a bias and claimed that they failed to properly address a cyberbullying incident in 2020.
