A recent report about a US court ordering Zoho founder Sridhar Vembu to post a staggering $1.7 billion bond in his ongoing divorce case has been strongly refuted by his legal team. His US attorney, Christopher C. Melcher, has labeled the bond order as "invalid" and clarified that it was issued a year ago under contentious circumstances.
Lawyer's Rebuttal: An "Invalid" Order Based on Misleading Claims
In a detailed statement, Melcher provided context missing from the initial reports. He explained that the order was made one year ago on an emergency application filed by Vembu's wife, Pramila Srinivasan. This gave Vembu's side little time to respond to what he termed "outrageously false allegations."
Melcher accused Srinivasan's attorney, who is not licensed to practice in California, of misleading the court. "The judge was fooled into making an order that Sridhar post a $1.7 billion bond for the wife’s supposed protection," Melcher stated. He emphasized that there is no legal authority for such an order and noted that a subsequent judge acknowledged the amount seemed "absurd."
The Core of the Divorce: Community Assets and a Refused Offer
The divorce, filed by Vembu in 2021, centers on the division of community assets—properties acquired during the marriage, as per California law. Vembu and Srinivasan married in 1993 and lived in the US before Vembu returned to India in 2019.
Melcher claims that Vembu has acted honorably, having already transferred his interest in the family home to her. Crucially, he stated that Vembu offered his wife 50% of his shares in Zoho Corporation Pvt. Ltd (ZCPL), but Srinivasan has "refused to accept the stock." Instead, she has alleged that Vembu is trying to cheat her, a claim Melcher says makes no sense given the offer on the table.
Current Status and Broader Context
Melcher revealed that Vembu was only able to borrow up to $150 million against his shares to comply with the bond, which the wife would not accept. He confirmed that the $1.7 billion bond order is on appeal and a related receivership order has been stayed.
"This has nothing to do with alimony," Melcher added, noting that Srinivasan has not sought support. He concluded that the case is "old news about an order that should never have been made" and does not define Vembu, who was awarded the Padma Shri in the same year he filed for divorce.
