Highlights:
- California court orders Sridhar Vembu to deposit a $1.7 billion bond
- Receiver appointed to oversee Zoho-linked entities and halt restructuring
- Allegations of undisclosed share transfers during marriage
- Dispute centers on ownership and valuation of Zoho assets
- Case could become among the most expensive divorces tied to an Indian founder
Zoho co-founder and owner Sridhar Vembu has once again found himself in the public spotlight, this time due to a high-profile divorce case unfolding in the United States. If the court’s directives are fully enforced, the dispute could rank among the most expensive divorces involving an Indian entrepreneur, with potential financial implications running into billions of dollars.
In a significant development, a California Superior Court has ordered Vembu to deposit a bond worth $1.7 billion as part of the ongoing divorce proceedings with his former wife, Pramila Srinivasan. The order, passed in January 2025, was driven by concerns that asset transfers and corporate decisions could adversely affect the equitable division of marital property.
The court has also appointed an independent receiver to oversee several Zoho-related entities and has barred any major corporate restructuring during the pendency of the case. According to reports, the court observed that Vembu had allegedly disregarded Pramila’s interests in community assets and may have violated applicable laws governing marital property. Multiple entities linked to Zoho, including Zoho Corporation, T&V Holdings Inc., Tony Thomas, and ZCPL, were cited as operating under Vembu’s direction in ways that could potentially harm her financial interests.
The dispute intensified after Pramila filed a petition in November 2024 alleging that Vembu had secretly transferred a substantial portion of his shares in Zoho Corporation, a US-based subsidiary fully owned by Chennai-based Zoho Corporation Private Limited. She claimed these transfers were executed in three phases and involved an entity controlled by a long-time associate of Vembu, without her knowledge or consent.
Pramila further stated that she had financially supported Vembu during the early stages of the company, enabling him to leave his job and focus entirely on building the business. She said she was taken aback to learn, after filing for divorce, that Vembu asserted his personal stake in Zoho was only 5 percent, with the majority ownership attributed to his siblings.
Vembu has strongly denied these allegations. He maintains that his ownership stake in Zoho has consistently been 5 percent, even during his tenure as co-founder and long-time CEO. According to Forbes’ 2025 estimates, Vembu and his siblings, who collectively own more than 80 percent of the company, have a combined net worth of approximately $6 billion.
After nearly three decades of marriage and raising their son in the United States, Vembu returned to India in late 2019. Divorce proceedings were initiated in 2021 and have since evolved into a complex legal battle involving corporate governance, asset valuation, and marital property rights.
Pramila Srinivasan, based in the US, is an accomplished academic and entrepreneur with a PhD in Electrical and Computer Engineering. She has built a career in health service technology, electronic health records, and digital infrastructure advocacy. She is also the founder of The Brain Foundation, a nonprofit organization dedicated to autism research, care, and community support.
As the case progresses, its outcome could set important precedents for cross-border asset disputes involving global technology companies and their founders.
