Lathika Pai, a prominent figure in India’s startup ecosystem and former Microsoft executive, has filed a ₹35.3 crore civil suit against Microsoft India and Microsoft Corporation. She claims she was forced to resign from her role as country head of venture capital and private equity partnerships at Microsoft in July 2024 due to “intimidation, retaliation, and a hostile work environment”.
Allegations of Constructive Dismissal
Pai alleges her resignation was not voluntary, but a result of “constructive dismissal.” This means she felt compelled to quit because her workplace had become intolerable. According to her, this led to loss of income, damage to her reputation, and significant mental distress.
The lawsuit names Microsoft India, its US parent company, Microsoft India’s president, the head of HR, and three senior legal and compliance officials as defendants.
Lathika Pai’s Background and Contributions
Lathika Pai is well-respected in the Indian startup community. She has founded companies focused on workforce training and social impact and has been a champion for women-led startups. Since joining Microsoft in 2018, Pai played a key role in supporting startups across India, the Middle East, and North Africa.
The “Highway to a 100 Unicorns” Programme
The dispute centres on the “Highway to a 100 Unicorns” programme, which was launched in 2019 to support early-stage startups in smaller Indian cities. The initiative worked closely with various state governments.
In late 2019, Microsoft received anonymous complaints about the programme, alleging vendor favouritism and possible policy breaches. An internal investigation was conducted, during which Pai says she cooperated fully. The investigation reportedly found no wrongdoing, and Pai was promoted in 2021.
However, in March 2024, Microsoft began a second investigation into the same programme, this time led by an external law firm.
Claims of Unfair Process and Workplace Hostility
Pai objected to the second investigation, stating she was denied access to the original complaints and previous interview transcripts. She also protested when her interview was not recorded, which she says violated company policy.
She claims that after raising these concerns, she faced hostility at work. She alleges she was pressured to hand over her personal phone, and her refusal was treated as non-compliance. Senior managers allegedly labelled her a “troublemaker,” ignored her contributions, and isolated her from internal support.
Cyberbullying and Bias Allegations
Pai also claims she reported receiving anonymous cyberbullying emails in early 2020, but the company did not take meaningful action. She further alleges that Microsoft’s leadership held biases against dealings with the Indian government, unfairly suspecting corruption in her work with state governments.
Legal Proceedings Move to Bengaluru
After nearly eight months of what she describes as harassment, Pai resigned in July 2024 to protect her health and reputation. The case, initially filed in Delhi, has now been moved to the city civil court in Bengaluru. The next hearing is scheduled for June 9, 2025.
Microsoft’s Response
Microsoft India has not issued any public response to the lawsuit or the allegations.