A court in the United States has directed Sridhar Vembu, co-founder of software firm Zoho, to post a $1.7 billion bond as part of an ongoing divorce case, raising rare judicial scrutiny over corporate ownership and marital asset protection.
The order, issued in January 2025 by the Superior Court of California, followed concerns that large financial and structural decisions involving Zoho-linked entities could impact the fair division of community property. The development was first reported by The News Minute.
Court Cites Risk to Community Property
In its ruling, the court said it was compelled to act after identifying potential risks related to asset movements made after divorce proceedings were initiated. It noted that these actions could undermine the financial interests of Vembu’s estranged wife, Pramila Srinivasan.
To safeguard assets while the case proceeds, the court appointed a receiver to oversee certain Zoho-related companies and temporarily blocked a proposed corporate restructuring.
According to the order, the court found reason to believe that decisions taken by Vembu — and by entities allegedly acting under his direction — could disadvantage Srinivasan’s stake in shared marital assets.
Dispute Over Zoho Shareholding
Srinivasan, an academic and entrepreneur based in the United States, alleged in filings submitted in November 2024 that Vembu transferred a significant portion of shares in Zoho’s US subsidiary to an entity controlled by one of his long-time associates. She claimed the transfer was structured in multiple phases and executed without disclosure.
In a statement quoted by The News Minute, Srinivasan said she financially supported Vembu during Zoho’s early years, enabling him to leave paid employment and focus on building the company. She said she was taken by surprise to later learn that he claimed ownership of only a small percentage of the firm.
Vembu has rejected these allegations, consistently stating that his personal stake in Zoho has always been limited to 5%, despite his role as co-founder and former chief executive.
Wealth and Family Control
According to the Forbes 2025 wealth rankings, Vembu and his siblings collectively hold a net worth of around $6 billion and control more than 80% of Zoho’s shares.
Vembu and Srinivasan were married for nearly 30 years and raised a son in the United States. Vembu relocated to India in 2019, while divorce proceedings formally began in 2021.
Who is Pramila Srinivasan
Srinivasan holds a doctorate in Electrical and Computer Engineering and has spent much of her career working in healthcare technology, particularly in electronic medical records and specialised care systems. She is also the founder of The Brain Foundation, a US-based non-profit focused on autism research, treatment, and community support.
