A US court has directed Zoho co-founder and chief scientist Sridhar Vembu, 58, to furnish a bond worth $1.7 billion (Rs 15,300 crores) as part of his ongoing divorce proceedings, citing concerns over asset transfers and the protection of marital property.
The order was passed by a California court hearing the divorce case between Vembu and his estranged wife, Pramila Srinivasan. The move is aimed at safeguarding marital assets and ensuring that funds remain available for a fair settlement. The development was first reported by The News Minute.
According to the report, the court observed that Vembu had allegedly carried out certain financial transactions after the divorce petition was filed, which may have violated automatic temporary restraining orders. These orders are meant to prevent either party from moving or disposing of shared assets during divorce proceedings.
In its January 2025 order, the court noted that the transfers raised serious concerns about transparency and compliance with the law. It warned that continued movement of assets could undermine its ability to equitably divide marital property.
The court also expressed concern that shifting assets outside the United States could make it difficult to enforce any financial award in favour of Srinivasan. The $1.7 billion bond has been mandated to ensure that sufficient assets remain available to meet potential obligations arising from the case.
Vembu and Pramila Srinivasan are contesting the division of assets accumulated during their marriage, with the dispute largely centred on Zoho-related holdings and intellectual property.
In her filings, Pramila Srinivasan has alleged that Vembu transferred Zoho ownership stakes and intellectual property through complex structures without her knowledge or consent. She has argued that these actions violate California’s community property laws, under which assets acquired during marriage are typically shared equally.
She also sought to block a proposed transaction that, according to her, would move a revenue-generating asset based in the US to a third party, thereby reducing the marital estate.
As part of its protective measures, the court has appointed a receiver over several Zoho entities in the US, as well as over Vembu’s personal assets within the country, to safeguard Srinivasan’s interests, the report said.
Vembu, along with his brothers, founded AdventNet in 1996, which was later renamed Zoho Corporation in 2009. He moved to India in late 2019 and filed for divorce in 2021. The January 2025 order followed an ex parte application filed by Pramila Srinivasan in November 2024.
Sridhar Vembu was the chief executive officer of the Zoho Corporation. According to Forbes, he is the 39th richest person in India. He was awarded the Padma Shri in 2021.
Vembu was born in 1968 in in a village in Thanjavur district of Tamil Nadu. He earned a bachelor's degree in Electrical Engineering from the Indian Institute of Technology, Madras in 1989, and earned his MS and PhD in Electrical Engineering degrees from Princeton University in New Jersey.