Former Microsoft India Executive Sues Company, Demands ₹35.3 Crore in Damages

Former Microsoft India executive Lathika Pai has taken legal action against the company, filing a civil suit that accuses Microsoft and several senior officials of creating a hostile work environment that ultimately forced her to resign. She’s seeking ₹35.3 crore in damages for emotional distress, reputational harm, and loss of income, *The Financial Times* reported.

Lathika Pai, a well-known figure in India’s startup world and a strong advocate for women in business, left Microsoft in July 2024. But according to her, it wasn’t a decision she made freely. In her lawsuit, she says she was effectively forced to quit after spending nearly eight months dealing with harassment and being slowly sidelined at work — all after an internal probe into a startup program she had been leading.

The case was first heard by the Delhi High Court on May 7. However, Microsoft’s legal team argued that the court didn’t have jurisdiction, and the matter has now been shifted to a civil court in Bengaluru. The next hearing is scheduled for June 9.

Pai had led “Highway to a 100 Unicorns,” a Microsoft initiative launched in 2019 to support early-stage startups in smaller cities across India. It was developed in collaboration with various state governments and quickly became a flagship program.

Things took a turn when anonymous complaints surfaced in late 2019, alleging vendor favoritism and financial irregularities. Microsoft launched an internal investigation, but Pai was cleared and even promoted in 2021. However, in 2024, the company opened a second investigation — this time led by U.S. law firm Morgan Lewis & Bockius.

Pai says this second probe was deeply flawed. She wasn’t given access to key documents, one of her interviews wasn’t recorded (in violation of company policy, she claims), and when she flagged these issues, she says she was labelled “a troublemaker” and pushed out of key roles.

Beyond the investigation, Pai’s complaint also accuses Microsoft of bias in its partnerships with state governments. She also alleges the company failed to act meaningfully after a cyberbullying incident she reported in 2020.

Pai is known for founding initiatives like JobSkills and SonderConnect and has long been a vocal advocate for diversity and innovation in the tech space. She is a veteran of the Indian startup world.

Her lawsuit also sparks a larger conversation about how companies like Microsoft deal with internal problems—and whether they’re truly fair and transparent, especially in the way they treat women in senior leadership roles.