Ex-Microsoft India Leader Lathika Pai Sues Company for Rs 35.3 Crore Over Toxic Work Culture

By: WE staff | Thursday, 22 May 2025

• A lawsuit has been filed by Lathika Pai, the former Microsoft India Country Head for Venture Capital and Private Equity Partnerships
• She is pursuing a ₹35.3 crore lawsuit against Microsoft Corporation and its Indian subsidiary

In a ₹35.3 crore lawsuit against Microsoft Corporation and its Indian subsidiary, Lathika Pai, the former Country Head for Venture Capital and Private Equity Partnerships at Microsoft India, claims she was fired from her position because of a "toxic and retaliatory" work environment.

The City Civil Court of Bengaluru is currently hearing the case, which was initially filed in the Delhi High Court. Pai claims that she did not resign in July 2024 of her own volition, but rather as a result of persistent internal hostility, exclusion, and procedural mistakes. According to her, Microsoft deliberately created an unworkable environment, leaving her with "no viable option" but to resign. She characterizes the situation as constructive dismissal.

Microsoft's "Highway to a 100 Unicorns" startup initiative, which Pai helped launch in 2019 to encourage innovation in Tier 2 and Tier 3 cities, is at the heart of the dispute. After accusations of vendor favoritism emerged in late 2019, a compliance review cleared Pai and resulted in her promotion in 2021. However, the American law firm Morgan Lewis started a second investigation in 2024.

According to Lathika, the second investigation lacked due process and transparency. She claims she was subjected to an "ambush-style" interrogation, denied access to documents from the previous investigation, and did not receive transcripts of her interviews. She says that because she objected, she was retaliated against by being branded as uncooperative, gradually removed from decision-making, and excluded from important platforms.

She also cites Microsoft's inaction regarding a 2020 cyber bullying incident and the company's reluctance to work with Indian state governments, which Pai claims are a crucial component of the startup ecosystem.

She is requesting ₹35.3 crore in compensation for lost wages, psychological distress, and harm to his reputation. The lawsuit draws attention to the emotional and professional toll that her experience took on her, as well as what she perceives to be a discrepancy between Microsoft's internal policies and its public pledge to diversity and inclusion.

Lathika, a prominent figure in India's startup scene, is a strong advocate for women-led businesses and the co-founder of programs like SonderConnect and Job Skills. The case's next hearing is set for June 9 in Bengaluru. Microsoft hasn't responded to the public yet.