Zoho founder Sridhar Vembu ordered to post $1.7 billion bond in Divorce case by US court; Vembu’s counsel responds, says: Order ‘invalid, cannot be complied with, and is …’
A report recently said that a US court has ordered Zoho founder Sridhar Vembu to pay $1.7 billion bond in his ongoing divorce case. Refuting the bond order, Vembu’s US attorney Christopher C. Melcher called it ‘invalid’ , clarifying that the order was made a year ago. “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,” Melcher said. He stated that the Zoho founder has “already transferred his interest in the family home to her,” adding that “the judge was fooled into making an order that Sridhar post a $1.7 billion bond for the wife’s supposed protection.” Sridhar Vembu married Pramila Srinivasan in 1993. The two lived in the US before Vembu returned to India in 2019. He filed for divorce with his estranged wife in 2021, the same year he was awarded with Padma Shri. At the heart of the divorce case are the community assets that are defined as assets acquired during the period of marriage. Such assets, as per the California laws are to be divided in cases of divorce. In the post, Vembu’s lawyer claims that Vembu has offered his wife 50% of his shares in ZCPL – Zoho Corporation Pvt. Ltd, but Srinivasan has “refused to accept the stock.” What Sridhar Vembu’s lawyer saidHere’s the full text of post shared by Zoho founder Sridhar Vembu’s counsel Christopher C. MelcherAs 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 attorney, 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.
