Bengaluru— Lathika Pai, a former senior executive at Microsoft India and a prominent figure in the Indian startup ecosystem, has filed a civil lawsuit against Microsoft India and Microsoft Corporation.
She alleges that she was compelled to resign in July 2024 due to a hostile work environment, seeking ₹35.3 crore (approximately $4.25 million) in damages.
The case, initially filed in the Delhi High Court, has been transferred to a civil court in Bengaluru, with the next hearing scheduled for June 9, 2025.
Key Facts:
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Pai served as Microsoft's Country Head for Venture Capital and Private Equity Partnerships until her resignation in July 2024.
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She alleges that she faced eight months of intimidation and professional isolation following an internal investigation into a startup initiative she led.
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The lawsuit seeks ₹35.3 crore in damages for loss of income, emotional distress, and reputational harm.
The dispute centers around the "Highway to a 100 Unicorns" program, launched by Microsoft in 2019 to support early-stage startups in small Indian cities.
In late 2019, anonymous allegations of vendor favoritism and financial irregularities prompted an internal investigation, which cleared Pai of wrongdoing. She was subsequently 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, and that a key interview in April 2024 was conducted without recording, violating Microsoft's policy.
Her objections allegedly led to further hostility, including being labeled a "troublemaker" and removed from key forums.
Pai also alleges that Microsoft failed to address a cyberbullying incident in 2020 and treated collaborations with state governments with bias.
She claims that these experiences caused significant damage to her mental health, reputation, and professional standing.
"I was subjected to months of intimidation and professional isolation following an internal investigation into a flagship startup initiative I led," Pai stated in her filing.
The lawsuit filed by Lathika Pai against Microsoft India highlights concerns about workplace culture and employee treatment within major tech corporations.
As the case proceeds, it may prompt discussions on corporate accountability and the mechanisms in place to address employee grievances. The next court hearing is scheduled for June 9, 2025, in Bengaluru.
Do You Know?
The "Highway to a 100 Unicorns" program aimed to support early-stage startups in small Indian cities through collaborations with state governments. Despite initial success, the program became the focal point of internal investigations leading to Pai's resignation.
Key Terms:
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Constructive Dismissal: A situation where an employee resigns due to the employer's behavior, effectively being forced to leave.
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Internal Investigation: A formal inquiry conducted within an organization to examine allegations of misconduct or policy violations.
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Cyberbullying: The use of electronic communication to bully or harass an individual, typically by sending messages of an intimidating or threatening nature.