A California court, hearing the divorce petition of Zoho co-founder and chief scientist Sridhar Vembu, has directed him to submit a bond of $1.7 billion, citing concerns over post-petition asset transfers and their potential impact on the division of marital property. The development was first reported by The News Minute.
According to the report, the court, referring to its pre-trial findings, said Vembu had not been transparent about certain financial transactions and had acted “without regard for the law”. In an order passed in January 2025, the court observed that asset transfers made after the initiation of divorce proceedings violated automatic temporary restraining orders meant to safeguard the marital estate.
The court noted that continued movement of assets could undermine its ability to fairly distribute marital property and raised concerns that Vembu may be unable to meet any financial award in favour of his estranged wife if assets are shifted outside the United States. Vembu and his wife, Pramila Srinivasan, are engaged in divorce proceedings in the US, with the dispute largely centred on the division of marital assets accumulated during their marriage.
Vembu, along with two of his brothers, had founded AdventNet in 1996, a software firm serving network equipment providers, which was later renamed Zoho Corporation in 2009.
As per The News Minute, Vembu moved to India in late 2019 and filed for divorce in 2021. The January 2025 order followed an ex parte application filed by Srinivasan in November 2024.
Dispute Over Zoho’s Ownership
In her filings, Srinivasan alleged that Vembu transferred Zoho ownership stakes and intellectual property through complex transactions without her knowledge or consent, arguing that such actions violated California’s community property laws. She also sought to block a proposed transaction that, according to her, would shift a revenue-generating “community asset” in the US to a third party.
Receiver and Bond Mandates
The court has also appointed a receiver over several Zoho entities in the US, as well as Vembu’s personal assets, to protect Srinivasan’s interests, the report said.