A former top executive with Microsoft India and a familiar figure in the Indian startup ecosystem, Lathika Pai, recently filed a civil suit against Microsoft India, along with its parent company, as well as some of its top officials, claiming damages to the tune of ₹35.3 crore.
The lawsuit, filed originally in the Delhi High Court but since transferred to a civil court in Bengaluru, states that Pai was forced to resign in July 2024 because of a hostile work environment, retaliation and what she calls “constructive dismissal.
Pai, who was Country Head of Microsoft for venture capital and private equity, alleges that she was subjected to months of threats and professional exile’s following an internal investigation into one of the flagship initiatives she led, “Highway to a 100 Unicorns.”
Launched in 2019, the program was designed to assist early-stage start-ups in smaller cities by working with state governments.
Anonymous complaints about alleged vendor favoritism and monetary misconduct within the “Highway to a 100 Unicorns” campaign were brought to Microsoft’s attention in late 2019, the lawsuit alleged.
Pai was reportedly cleared of any wrongdoing in an internal compliance probe, and was elevated to a position even higher in 2021. But a second probe was opened in March 2024, this time by a U.S. law firm.
Pai claims she was unable to access the original complaints and the transcripts of the first investigation. [Disclosure: That person notes her request that the interview be held off the record, in violation of Microsoft’s own policy.]
According to Carter, she was retaliated against by the company for raising these procedural failures. Pai says she was smeared as a “troublemaker,” blocked from critical discussions and her work was publicly disregarded.
The suit also mentions an alleged cyberbullying episode in 2020, for which Pai says Microsoft had promised a thorough forensic investigation that he never received.
She also claims that Microsoft management had an unhealthy bias against partnerships with state governments that she thinks fuelled the scrutiny she was subjected to.
Claiming it had compromised her mental health, reputation and career, Pai resigned in July 2024 almost eight months after the alleged harassment began.
She’s suing for a large amount in lost income, emotional distress and damage to her reputation.
The Delhi High Court heard the matter on May 7, when Microsoft’s legal team had resisted the court’s jurisdiction. A Bengaluru civil court has taken it up for hearing on June 9.
The high-profile suit is likely to generate close scrutiny and important questions on corporate governance, internal investigation procedures and the position of women leaders at the helm of global technology companies in India.