Sridhar Vembu, celebrated for his “simple living” philosophy and rural development initiatives in India, is currently embroiled in one of the most expensive divorce disputes in tech history.5 A Superior Court in Alameda County, California, has mandated that Vembu deposit a $1.7 billion bond to protect the financial interests of his wife of nearly 30 years, Pramila Srinivasan.6
Why the Massive Bond?
The court’s decision is rooted in California’s community property laws, which dictate that assets acquired during a marriage must be split 50/50.7 The judge issued the order following several “pre-trial findings”:
- Alleged Asset Shielding: The court accused Vembu of being “non-transparent” regarding financial transactions and acting “without regard for the law” by moving assets after the divorce was filed in 2021.8
- Violating Restraining Orders: The ruling suggests that Vembu attempted to transfer control of US-based Zoho entities to family members and associates to reduce the value of the marital estate.9
- The $1.7B Figure: This amount represents the court’s estimate of the security needed to ensure Srinivasan receives her rightful share of Zoho, which she claims she helped build while supporting the family financially in its early years.
The Core Dispute: Who Owns Zoho?
At the heart of the case is a disagreement over the ownership structure of Zoho Corporation Pvt Ltd (ZCPL).10
| Party | Claim |
| Pramila Srinivasan | Claims Vembu secretly transferred shares to his siblings, leaving him with only a 5% stake to avoid a 50% divorce settlement. |
| Sridhar Vembu | Maintains he has always held only a 5% stake and that the majority of the company has long been owned by his sister (Radha) and brother (Sekar). |
| The Court | Has appointed a receiver to oversee several US-based Zoho entities to prevent further restructuring until the case is settled. |
Defense: “Invalid and Unconstitutional”
Vembu’s legal team, led by attorney Christopher C. Melcher, has hit back at the ruling, calling the bond amount “absurd” and “invalid.”11
“The judge was fooled into making an order that Sridhar post a $1.7 billion bond… There is no legal authority for such an order. It is currently on appeal.” — Christopher C. Melcher, Counsel for Sridhar Vembu
Melcher further clarified that Vembu had offered 50% of his actual 5% holding to his wife, which she refused, seeking a share of the much larger stake currently held by his siblings.12
Key Timeline
- 1993: Sridhar Vembu and Pramila Srinivasan marry.
- 1996: Zoho (then AdventNet) is founded in a California apartment.13
- Late 2019: Vembu moves to a village in Tamil Nadu, India.14
- 2021: Vembu files for divorce in California.15
- Jan 2025: Court issues the $1.7B bond order (made public Jan 2026).16
- Jan 2026: Receivership order is stayed pending an appeal.17
