Lathika Pai, a prominent figure in India’s startup ecosystem and a former senior executive at Microsoft, has filed a civil suit against Microsoft India and Microsoft Corporation, seeking ₹35.3 crore in damages for what she describes as an “unfair and forced resignation.”

Filed in the Delhi High Court, Pai alleges she was compelled to resign from her position as Country Head of Venture Capital and Private Equity Partnerships at Microsoft in July 2024 due to a hostile work environment, intimidation, and retaliation, which she claims amounts to constructive dismissal. This, according to her, led to loss of income, reputational harm, and emotional distress.

The lawsuit also names Microsoft India President Puneet Chandok, HR Head Arun Kakatkar, and three members of Microsoft’s legal and compliance teams who were involved in internal investigations as respondents. Microsoft India has yet to publicly respond to the claims.

At the center of the dispute is a startup programme called “Highway to a 100 Unicorns”, which Pai led under Microsoft’s startup division. In 2019, the initiative attracted anonymous complaints about alleged vendor favoritism and misuse of funds. Microsoft’s internal legal teams investigated the matter, found no wrongdoing, and cleared the project. Pai was later promoted in 2021.

However, in March 2024, Microsoft reopened the investigation, this time involving the external law firm Morgan Lewis & Bockius LLP. Pai opposed the second inquiry, arguing that it lacked transparency and due process. She claimed she was denied access to original complaints, transcripts from earlier interviews, and that her April 2024 interview was not recorded—violating Microsoft’s own investigation policies.

Following her resistance, Pai alleges she was labeled a “troublemaker,” marginalized within the company, and excluded from key platforms and recognition. She also claimed that the demand to submit her personal phone during the investigation, and the treatment of her refusal as non-cooperation, added to the pressure campaign.

Pai further accused Microsoft of failing to act on a cyberbullying complaint she raised in 2020, despite promising a forensic probe. She also alleged that Microsoft held a bias against Indian government engagements, often presuming misconduct in such collaborations. Her interactions with state governments as part of the startup programme, she claims, were used unfairly against her.

After enduring what she describes as eight months of harassment, Pai resigned in July 2024 to protect her mental health and professional reputation. She asserts that Microsoft failed to uphold its internal standards on fairness, transparency, and employee well-being.

The Delhi High Court initially heard the case on May 7, where Microsoft’s counsel, Amit Sibal, argued that the court did not have the jurisdiction to hear the matter. The case has now been transferred to the city civil court in Bengaluru, where both parties are expected to appear on June 9.

Lathika Pai, a prominent figure in India’s startup ecosystem and a former senior executive at Microsoft, has filed a civil suit against Microsoft India and Microsoft Corporation, seeking ₹35.3 crore in damages for what she describes as an “unfair and forced resignation.”

Filed in the Delhi High Court, Pai alleges she was compelled to resign from her position as Country Head of Venture Capital and Private Equity Partnerships at Microsoft in July 2024 due to a hostile work environment, intimidation, and retaliation, which she claims amounts to constructive dismissal. This, according to her, led to loss of income, reputational harm, and emotional distress.

The lawsuit also names Microsoft India President Puneet Chandok, HR Head Arun Kakatkar, and three members of Microsoft’s legal and compliance teams who were involved in internal investigations as respondents. Microsoft India has yet to publicly respond to the claims.

At the center of the dispute is a startup programme called “Highway to a 100 Unicorns”, which Pai led under Microsoft’s startup division. In 2019, the initiative attracted anonymous complaints about alleged vendor favoritism and misuse of funds. Microsoft’s internal legal teams investigated the matter, found no wrongdoing, and cleared the project. Pai was later promoted in 2021.

However, in March 2024, Microsoft reopened the investigation, this time involving the external law firm Morgan Lewis & Bockius LLP. Pai opposed the second inquiry, arguing that it lacked transparency and due process. She claimed she was denied access to original complaints, transcripts from earlier interviews, and that her April 2024 interview was not recorded—violating Microsoft’s own investigation policies.

Following her resistance, Pai alleges she was labeled a “troublemaker,” marginalized within the company, and excluded from key platforms and recognition. She also claimed that the demand to submit her personal phone during the investigation, and the treatment of her refusal as non-cooperation, added to the pressure campaign.

Pai further accused Microsoft of failing to act on a cyberbullying complaint she raised in 2020, despite promising a forensic probe. She also alleged that Microsoft held a bias against Indian government engagements, often presuming misconduct in such collaborations. Her interactions with state governments as part of the startup programme, she claims, were used unfairly against her.

After enduring what she describes as eight months of harassment, Pai resigned in July 2024 to protect her mental health and professional reputation. She asserts that Microsoft failed to uphold its internal standards on fairness, transparency, and employee well-being.

The Delhi High Court initially heard the case on May 7, where Microsoft’s counsel, Amit Sibal, argued that the court did not have the jurisdiction to hear the matter. The case has now been transferred to the city civil court in Bengaluru, where both parties are expected to appear on June 9.