A US court has ordered Zoho founder Sridhar Vembu to post a bond of $1.7 billion (approximately Rs 15,278 crore) in his ongoing divorce proceedings with his estranged wife, Pramila Srinivasan, according to a report by The News Minute. The development has renewed attention on the high-profile legal dispute involving child custody, marital assets, and ownership stakes in Zoho Corporation. The order was issued by a California court earlier this year following an emergency application filed by Srinivasan. While the court described the direction as “unprecedented,” it said the measure was necessary to prevent potential prejudice to Srinivasan’s rights over marital property.
The dispute centres on assets accumulated during the couple’s nearly three decades in California. Under California law, property acquired during a marriage is considered jointly owned, regardless of where the assets are held.
Background Of The Dispute
Vembu, an IIT-Madras alumnus, moved to the United States in 1989 to pursue a PhD at Princeton University. He married Srinivasan, an academic and entrepreneur, in 1993. In 1996, Vembu co-founded AdventNet along with his brothers and a friend — a company later renamed Zoho Corporation in 2009. The couple lived in California for almost 30 years and have a 26-year-old son diagnosed with autism. In 2019, Vembu relocated to India and began running Zoho from his ancestral village in Tamil Nadu. Divorce proceedings were initiated in 2021.
In court filings, Srinivasan alleged that Vembu abandoned her and their special-needs son after moving to India. She also accused him of transferring Zoho’s intellectual property and ownership stakes to India through complex transactions without her consent. According to her claims, a majority of Zoho shares were placed with Vembu’s siblings, including his sister Radha Vembu, who holds an estimated 47.8% stake, and brother Sekar Vembu, who owns around 35.2%. Vembu reportedly retains about 5% ownership, valued at roughly $225 million.
Srinivasan alleged that these transfers violated California law governing community property. Vembu has denied the allegations, calling them “complete fiction,” and said he has continued to financially support his wife and son.
Srinivasan Refused An Offer To Take 50% Of Vembu’s Shares
Following reports of the bond order, Vembu’s lawyer, Christopher C. Melcher, said the directive was issued nearly a year ago based on what he described as misleading claims. In a post on social media platform X, Melcher said Srinivasan had refused an offer to take 50% of Vembu’s shares in Zoho’s parent company. He further stated that the bond order is invalid, cannot be complied with, and is currently under appeal. Vembu has not publicly commented on the development.
The outcome of the case is expected to have significant implications for one of India’s most prominent technology entrepreneurs and Zoho’s ownership structure.
