Mumbai, May 21: Lathika Pai, a former Microsoft executive, sued the tech giant for INR 35.3 crore, alleging work environment-related issues and "constructive dismissal". The ex-Microsoft executive Lathika Pai filed a civil lawsuit in the Delhi High Court against Microsoft India, its parent company, and the senior officials, seeking INR 35.3 crore in damages. The case was later moved to the Bengaluru civil court. 

Lathika Pai, who worked as Microsoft's Country Head for Venture Capital and Private Equity Partnerships, alleged that she was forced to resign from Microsoft due to its hostile work environment, workplace harassment and policy violations. Pai termed her resignation as "constructive dismissal". TikTok Layoffs Expected Soon: TikTok Shop US Head Mu Qing Asks E-Commerce Staff To Work From Home Amid Operational Restructuring and Future Ban, Says Report.

Lathika Pai resigned from Microsoft in July 2024, claiming she faced months of intimidation and professional isolation at the company. She alleged that it all started after an internal investigation was initiated into a flagship startup programme she led. Microsoft launched the "Highway to a 100 Unicorns" flagship startup program in 2019 to support early-stage startups in smaller cities. Later that year, anonymous allegations of vendor favouritism and financial issues surfaced. An internal probe cleared Lathika Pai, who was promoted in 2021.

In March 2024, a second probe led by U.S. law firm Morgan Lewis & Bockius was launched. Lathika Pai alleged that she was denied access to the prior complaints and transcripts from the first investigation. She was put through a key interview session without recording it, which violated Microsoft's policy. When objected, she claimed to have faced more hostility from the company. 

Lathika Pai alleged that Microsoft labelled her a "troublemaker" and removed her from key forums. Moreover, she claimed that her contributions were publicly ignored. Pai said that Microsoft asked her to hand over her personal phone during the second inquiry, and when she refused to do so, her actions were considered showing "non-cooperation". Lathika Pai said that it lacked a legal basis. Accenture To Promote 50,000 Employees Globally by June After Six-Month Delay, Rolls Out Salary Hikes up to 13%, Say Reports.

Lathika Pai, previously founded ventures such as JobSkills and SonderConnect. She has been an active advocate speaking for inclusion and innovation in startup ecosystem of India.

(The above story first appeared on LatestLY on May 21, 2025 07:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).