Ex-exec Lathika Pai sues Microsoft for Rs 35 Cr, alleges hostile termination

Pai claims that following an internal probe into a flagship startup initiative she led at Microsoft, she faced months of intimidation and professional isolation.

May 22, 2025 - 01:00

Ex-exec Lathika Pai sues Microsoft for Rs 35 Cr, alleges hostile termination

Lathika Pai, a former executive at Microsoft India, has filed a civil suit seeking Rs 35.3 crore in damages from the software giant, its global parent, and several senior officials.

According to multiple media reports, originally lodged in the Delhi High Court, the case has now been transferred to a civil court in Bengaluru.

The Morning Context first reported the development.

Pai alleged that a hostile work environment, retaliatory measures, and repeated policy breaches by the company amounted to a “constructive dismissal,” effectively forcing her to resign after more than six years on the job, Inc42 reported.

She claims that following an internal probe into a flagship startup initiative she led, she faced months of intimidation and professional isolation.

She joined Microsoft in July 2018 and launched the “Highway to a 100 Unicorns” programme a year later. The initiative primarily aimed to support Tier II city startups by collaborating with state governments.

In 2019, Microsoft received anonymous complaints alleging vendor favouritism and financial irregularities linked to the initiative. A compliance investigation reportedly cleared her of any wrongdoing, and she was promoted in 2021.

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However, Morgan Lewis & Bockius, a US-based law firm, initiated a second investigation in March last year.

Pai alleges she was not given access to the original complaints or transcripts from the first probe, and that a key interview in April 2024 was also held off the record, violating Microsoft’s stated policy.

She claims her objections to these procedural lapses triggered further hostility from the tech behemoth.

Pai claims she was branded a “troublemaker,” excluded from key forums, and her contributions were publicly overlooked. She also alleges that Microsoft treated her refusal to surrender her personal phone during the second investigation as evidence of non-cooperation, despite no legal requirement to do so.

The lawsuit additionally cites a 2020 cyberbullying incident, alleging that while Microsoft promised a forensic investigation, it failed to follow through. Pai further contends that senior leadership unfairly viewed the company’s partnerships with state governments with suspicion.

Pai resigned in July 2024, citing severe damage to her mental health and reputation. The matter is scheduled for hearing in a Bengaluru civil court on June 9.

Edited by Kanishk Singh