Explained: Why a former Microsoft India senior executive is suing the company for Rs 35.3 crore

Microsoft

Lathika Pai, a former senior executive at Microsoft India, has filed a civil suit seeking Rs 35.3 crore in damages, alleging wrongful treatment, harassment, and what she calls a “constructive dismissal.” The case, which was initially filed in the Delhi High Court, has now been transferred to a civil court in Bengaluru.

Who is Lathika Pai?

Pai served as the Country Head for Venture Capital and Private Equity Partnerships at Microsoft India from July 2018 to October 2024. She was known for leading initiatives such as “Highway to a 100 Unicorns,” a program launched in 2019 to support startups in India’s Tier-2 cities.

What is Pai alleging?

At the heart of Pai’s civil suit is a claim of constructive dismissal—a situation where an employee is forced to resign due to an unbearable work environment created by the employer.

Pai says Microsoft subjected her to a hostile and retaliatory work culture after two internal investigations were launched against her. The first, in 2019, examined allegations of vendor favouritism and financial misconduct. According to Pai, this probe found no wrongdoing.

However, a second investigation in 2024, led by the US law firm Morgan Lewis & Bockius, revived scrutiny. Pai alleges that she wasn’t given any access to her earlier complaint’s transcripts or documents. A key interview during the second probe was, she claims, conducted off the record — violating Microsoft’s internal policies. When she raised concerns, Pai says she was branded a “troublemaker” and sidelined from key projects and forums, as per multiple online reports.

Cyberbullying claims

Furthermore, Pai alleges that she was the target of cyber harassment in 2020, receiving defamatory emails from anonymous sources. She claims to have formally reported the issue to Microsoft’s InfoSec team and the then-head of Corporate, External & Legal Affairs (CELA) India. Despite requesting a forensic probe, she contends the company failed to investigate the matter adequately or offer protection, as per reports.

Why did she resign?

Pai resigned on October 8, 2024, calling it a resignation “for cause.” She cited multiple reasons including breach of her employment contract, hostile work environment, and intimidation and mental distress. These points were reiterated in a follow-up email to senior leadership, and her resignation was accepted the same day.

What is Pai seeking?

Pai is demanding ₹35.3 crore in compensation, which she says accounts for lost salary, bonuses, and stock options for the next seven years — time she believes she would have continued in Microsoft’s senior leadership. In addition to this, she also says that compensation is for breach of internal policies and her employment contract, among other things.

What does Microsoft have to say?

Microsoft hasn’t made any public comment on the lawsuit.