A California court has directed Zoho co-founder Sridhar Vembu to furnish a USD 1.7 billion bond in his ongoing divorce case amid a dispute over asset transfers and community property rights. Vembu’s lawyer has strongly contested the order, calling it invalid and based on misleading allegations.
NEW DELHI: A high-profile legal development has emerged from the United States involving Zoho Corporation co-founder Sridhar Vembu and his ongoing divorce case with his estranged wife, Pramila Srinivasan. A California court has ordered Mr Vembu to post a bond of USD 1.7 billion (approximately Rs 15,278 crore) to secure his wife’s rights in the divorce proceedings.
This order was passed by the Superior Court of California in Alameda County in January 2025 and has now come to wider public attention.
According to court documents, the bond was ordered to protect Mrs Srinivasan’s financial interest in marital assets that were acquired during the couple’s long marriage. Under California community property law, assets earned or acquired during marriage are presumed to be jointly owned by both spouses and must be equitably divided in a divorce.
The court has expressed concerns regarding Mr Vembu’s financial transparency and past transactions involving Zoho entities and related assets in the US. In its order, the court stated:
“The record in this case demonstrates that petitioner (Sridhar) has acted without regard for respondent’s (Pramila’s) interests in community assets and without regard for the law, and that Zoho Corporation, T&V Holdings, Inc., Tony Thomas, ZCPL and related entities will act at Petitioner’s direction to further Petitioner’s interest and prejudice Respondent’s interests.”
In addition to the bond order, the court also appointed a receiver to oversee several U.S. business entities associated with Mr Vembu and placed a temporary hold on a major corporate asset transfer. These steps were taken as part of the pre-trial process to prevent alleged dissipation of marital property while the divorce case continues.
Mrs Srinivasan’s court filings reportedly include claims that Mr Vembu transferred shares and intellectual property interests without her knowledge or consent during the marriage. She also alleged that after the family moved from Canada to the United States, Mr Vembu eventually relocated to India in 2019 and initiated divorce proceedings in 2021.
Reacting to the bond order and media reports, Mr Vembu’s U.S. attorney, Christopher C. Melcher, issued a detailed response on X (formerly Twitter), disputing the basis and validity of the court’s direction. In his post, the attorney wrote:
“As Sridhar Vembu’s counsel, I can add some facts missing from the article. The order was made 1 year ago on an emergency application by his wife, meaning we had little time to response to the outrageously false allegations she made against Sridhar. The judge in California was completely misled by the wife’s attoney, who is not even licensed to practice law in California and has inserted himself into this case from New York even though there are no New York issues.
Sridhar offered his wife 50% of his shares in ZCPL, but to this day she has refused to accept the stock. Instead, she has claimed that Sridhar is trying to cheat her in the divorce. This makes no sense as she could take her half of the shares now and Sridhar has already transferred his interest in the family home to her. Despite acting honorably during this process, the judge was fooled into making an order that Sridhar post a $1.7 billion bond for the wife’s supposed protection. There is no legal authority for such an order.
A subsequent judge acknowledged that the amount seemed absurd. Sridhar was able to borrow up to $150 million against his shares which was the extent of his ability to comply but the wife would not accept the money. This was a waste of time by the wife as she has nothing to show for her effort to disparage Sridhar. Her attorney misled the court and may be misleading her too about reality, while he has billed millions of dollars of fees. This has nothing to do with alimony by the way, as the wife has not even sought an order for support. Sridhar is in full compliance with all lawful orders of the California.
The $1.7 billion bond order is invalid, cannot be complied with, and is on appeal. The receivership order has been stayed on appeal. So, this old news about an order that should never have been made. I am honored to represent Sridhar and to have been given the opportunity to know such a wonderful person. This case does not define him and mirrors the bad actions of his wife and her New York attorney.”
These statements were reposted by Mr Vembu himself on his social media profile. His legal team contends the bond order was passed on an ex-parte emergency application that did not allow sufficient time to respond to what they describe as “outrageously false allegations.” They further argue that the amount ordered is legally untenable and currently under appeal.
However, lawyers representing Mrs Srinivasan have maintained that the bond order remains valid and in force. They say public court records cannot be altered through social media posts and that Mr Vembu has not yet complied with the requirement to post the bond.
The legal dispute continues to unfold, with both sides preparing further filings and arguments in the California courts. Mr Vembu has not issued a personal statement on the matter, leaving detailed legal representations from counsel as the primary source of public commentary.
Note: This article is based on verified legal reporting and public court data as covered by multiple Indian and international news sources.
Explanatory Table – Laws & Legal Principles Involved
| Law / Principle | Jurisdiction | Explanation | Relevance to Case |
| Community Property Law | California, USA | Assets acquired during marriage are presumed to be jointly owned 50:50 unless proven otherwise | Basis for wife’s claim over Zoho-related assets |
| Bond / Security Order (Equitable Relief) | California Family Law | Court can order financial security to protect alleged marital interest pending trial | Court directed USD 1.7B bond before final adjudication |
| Receivership | California Civil Procedure | Appointment of an independent receiver to manage assets | Ordered to oversee certain US entities linked to husband |
| Ex-Parte Emergency Application | Procedural Law (CA) | Interim order passed without full hearing of other side | Husband claims order was passed on misleading emergency plea |
| Appeal Against Interim Orders | Appellate Procedure | Interim matrimonial orders can be challenged before higher courts | Bond order and receivership stated to be under appeal |
| No-Fault Divorce Framework | California Family Code | Divorce does not require proof of wrongdoing | Financial orders still heavily impact one party pre-trial |
| Equitable Distribution (Applied within Community Property) | California | Court may issue protective orders to ensure fairness | Used to justify extraordinary financial restraint |
Extracted Case Details (As Available from Public Reporting)
| Particular | Details |
| Case Title | Srinivasan v. Vembu (Matrimonial Proceedings – exact styled title not publicly released) |
| Jurisdiction / Court | Superior Court of California, County of Alameda, United States |
| Nature of Case | Divorce and division of marital / community property |
| Petitioner (Wife) | Pramila Srinivasan |
| Respondent (Husband) | Sridhar Vembu |
| Bond Ordered | USD 1.7 Billion (approx. ₹15,000+ crore) |
| Stage of Proceedings | Interim / pre-trial orders |
| Status of Order | Under appeal; receivership reportedly stayed |
| Neutral Citation | Not publicly available (US family court orders typically do not carry neutral citations like Indian courts) |
| Date of Impugned Order | January 2025 (as reported) |
Counsels (As Reported in Public Domain)
| Party | Counsel |
| Respondent (Husband) | Christopher C. Melcher, Attorney at Law (USA) |
| Petitioner (Wife) | Name not formally disclosed in reports (referred to as New York–based attorney in pleadings) |
Key Takeaways
- A husband can be forced to secure massive wealth even before guilt, liability, or final division of assets is decided.
- Interim divorce orders now operate on presumption, not proof, turning allegations into financial punishment.
- High-value bonds and receivership show how divorce law can be used as economic pressure, not protection.
- There is no equal presumption against wives, exposing clear lack of gender neutrality in family law.
- The case is a warning for Indian men that cross-border marriages can place them under hostile legal regimes.
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