Lathika Pai, a prominent startup mentor and former Microsoft executive, has filed a civil suit in Delhi High Court seeking ₹35.3 Cr in damages from Microsoft India and Microsoft Corporation. She claims she was forced to resign in July 2024 due to workplace intimidation, retaliation, and a hostile environment—constituting what she describes as constructive dismissal.
Case Transferred to Bengaluru Court
The suit, initially filed in the Delhi High Court, has been transferred to the city civil court in Bengaluru. Named in the case are Microsoft India, its president Puneet Chandok, HR head Arun Kakatkar, and three legal and compliance officers involved in related internal investigations.
Background of Pai’s Role at Microsoft
Pai joined Microsoft in 2018 as MD for startups across India, the Middle East, and North Africa. She led the “Highway to a 100 Unicorns” initiative, which supported early-stage startups in smaller Indian cities through state government partnerships.
Internal Investigations and Promotion
In 2019, Microsoft received anonymous complaints about the programme, leading to an internal investigation by its compliance teams. The investigation found no wrongdoing, and Pai was promoted in 2021 to head venture capital and private equity partnerships.
Second Inquiry and Dispute
In 2024, Microsoft launched a second inquiry, this time led by an external firm. Pai objected to the lack of procedural fairness, including not being given the original complaints or full interview transcripts. She also opposed the refusal to record interviews, citing violation of company policies.
Hostility and Cyberbullying Claims
Pai has alleged being labelled a “troublemaker,” isolated by senior management, and excluded from internal support systems. She also claimed the company failed to investigate cyberbullying emails she received in 2020, despite assurances of a forensic probe.
Bias in Leadership and Resignation
According to Pai, Microsoft’s leadership harboured biased assumptions about dealings with Indian government officials. Despite prior clearance, her collaboration with state governments became a focal point of suspicion. She resigned in July 2024, citing severe mental and reputational harm.
Legal Proceedings Ahead
During a May 7 hearing, Microsoft’s lawyer argued that the Delhi court lacked jurisdiction. The case will now proceed in the Bengaluru city civil court, with the next hearing scheduled for June 9
