Former Microsoft India executive Lathika Pai has filed a civil lawsuit against Microsoft India, its global parent, and several senior officials, seeking ₹35.3 crore in damages.
The lawsuit, initially lodged in the Delhi High Court, has now been transferred to a civil court in Bengaluru following a jurisdictional challenge by Microsoft’s legal team.
Lathika, who served as Country Head for Venture Capital and Private Equity Partnerships, alleges that she was forced to resign due to a hostile work environment, retaliatory actions, and procedural unfairness, amounting to what she describes as “constructive dismissal”.
Background: Lathika Pai’s Role at Microsoft
Lathika joined Microsoft India in July 2018 and played a key role in supporting India’s startup ecosystem.
She launched the “Highway to a 100 Unicorns” initiative in 2019, aimed at helping early-stage startups in Tier-II cities through collaborations with state governments.
However, in late 2019, Microsoft received anonymous complaints alleging vendor favoritism and financial irregularities linked to the initiative.
An internal compliance investigation reportedly cleared Lathika of any wrongdoing, leading to her promotion in 20212.
Second Investigation and Allegations of Hostility at Microsoft
Although Lathika was cleared in the first probe, Microsoft initiated a second investigation in March 2024.
The inquiry was conducted by Morgan Lewis & Bockius, a U.S.-based law firm, raising further scrutiny of her actions.
Lathika claims that she was denied access to the original complaints and transcripts from the first investigation, limiting her ability to review the evidence.
She also alleges that a key interview in April 2024 was conducted off the record, violating Microsoft’s stated policy on transparency.
She claims that her objections to procedural lapses led to increased hostility from Microsoft, affecting her workplace experience.
As a result, she was excluded from key forums, labeled a “troublemaker,” and saw her contributions publicly overlooked.
Lathika claims that Microsoft viewed her refusal to surrender her personal phone during the second investigation as evidence of non-cooperation.
She argues that there was no legal requirement for her to provide access to her device.
Cyberbullying Incident and Leadership Bias
Lathika’s lawsuit also references a 2020 cyberbullying incident, in which she claims Microsoft promised a forensic investigation but failed to follow through.
She claims that Microsoft’s leadership unfairly viewed partnerships with state governments with suspicion, creating challenges for her initiatives.
She believes this led to increased scrutiny of her actions and decisions, ultimately impacting her role at the company.
Resignation and Legal Proceedings
After eight months of alleged harassment, Lathika resigned in July 2024 due to ongoing workplace challenges.
She cited severe damage to her mental health, reputation, and professional standing as reasons for her departure.
She is now seeking compensation for loss of income, emotional distress, and reputational harm. The case will be heard in Bengaluru on June 9.
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