SAN FRANCISCO (TIP): : Sridhar Vembu, co-founder and chief scientist of software company Zoho, is making headlines for reasons far removed from the tech world. A California court has ordered Vembu to post a $1.7 billion bond as part of a contentious divorce with his ex-wife, Pramila Srinivasan.
The ruling comes amid concerns that asset transfers could leave Srinivasan at a disadvantage, highlighting how personal legal battles can intersect with the management of major tech companies. A California court is moving to protect the assets the couple built over nearly 30 years of marriage, according to The News Minute.
Vembu, known for his support of rural development in India and his preference for a modest lifestyle, has not yet fully complied with the court’s directive. The case has drawn attention to the complex ownership structure of Zoho and its potential role in the ongoing divorce proceedings.
In a sharply worded order, the court appointed Kyle Everett of San Francisco as a receiver to oversee several entities tied to Vembu, including Zoho Corporation, Zoho Technologies, Zoho Distribution Corp., and T&V Holdings, along with the personal assets of Vembu and his associate Tony Thomas. Everett’s role is to take control of assets, records, and property to ensure they are preserved until the divorce proceedings are fully resolved.
The court blocked a multi-stage asset transfer that would have moved control of the U.S.-based Zoho Corporation to an entity fully owned by Tony Thomas. Judges rejected Vembu’s argument that the transfer was intended for tax purposes, calling it “not credible” and noting that it violated temporary restraining orders meant to protect marital property. “The record in this case demonstrates that Petitioner has acted without regard for Respondent’s interests in community assets and without regard for the law,” the order stated.
Vembu initially did not post any bond and later proposed amounts up to $150 million, all of which the court rejected. Srinivasan, meanwhile, posted a $275,000 bond to initiate the receivership, while related entities secured stays by providing their own guarantees.
The legal battle traces back to Vembu’s 2021 divorce filing in California, where he and Srinivasan lived with their son before Vembu relocated to India in late 2019. Under California law, assets acquired during marriage are generally divided equally unless both parties agree otherwise in writing.
Srinivasan alleges that Vembu secretly transferred significant Zoho shares to family members, including his sister Radha Vembu, who holds a 47.8 percent stake, and his brother Sekar Vembu, who owns 35.2 percent, leaving him with what she claims is only a 5 percent holding in the parent company, Zoho Corporation Pvt Ltd (ZCPL), based in Chennai. She asserts that she supported Vembu financially during Zoho’s early days, enabling him to leave his job to pursue entrepreneurship. “I felt shocked to learn only after he filed for divorce that he claimed to own just 5 percent of the company he had spent our marriage building,” Srinivasan stated in court filings.
Vembu denies these allegations, maintaining that his stake has always been 5 percent following a 2010 restructuring in which ZCPL purchased the U.S. entity’s intellectual property for $50 million — a transaction Srinivasan contests as unverified. The court noted a lack of financial transparency, raising the possibility of breaches of fiduciary duty that could entitle Srinivasan to a larger share of the company.
The January 2025 order came in response to an application filed by Pramila Srinivasan. The court concluded that Sridhar Vembu acted “without regard for the law” and lacked transparency in transactions affecting the couple’s joint assets.
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