In a strong response to a report published yesterday on a US court's directive for Zoho founder Sridhar Vembu to post a $1.7 billion bond in his ongoing divorce proceedings, his lawyer Christopher Melcher has dismissed the development as outdated and baseless. Taking to social media, Melcher provided detailed clarifications, emphasising that the order dates back a year and stems from misleading claims by Vembu's wife.
Melcher, representing Vembu, highlighted that the bond order was issued on an urgent basis, leaving little room for a proper defence. "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," he stated. He accused the wife's attorney, unlicensed to practise in California and operating from New York, of deceiving the court. "The judge in California was completely misled by the wife’s attoney, 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."
According to Melcher, Vembu has acted honourably throughout the process, offering his wife half of his shares in Zoho Corporation Private Limited (ZCPL). "Sridhar offered his wife 50% of his shares in ZCPL, but to this day she has refused to accept the stock," he explained. Additionally, Vembu has already transferred his interest in the family home to her. Despite these gestures, the wife has alleged attempts to defraud her, claims Melcher described as illogical. He noted that Vembu managed to secure a $150 million loan against his shares to partially comply, but she rejected it. "This was a waste of time by the wife as she has nothing to show for her effort to disparage Sridhar."
Addressing a specific query on social media about the share transfer allegations – including claims that Vembu shifted assets to his sister – Melcher clarified Vembu's actual holdings. "Sridhar owns 5 percent of the shares of the parent company ZCPL. That is what the company records show and he offered to transfer one-half of those shares to his wife, unconditionally, without requiring her to waive any of her claims," he responded. He refuted the wife's assertion that Vembu once held over 80 percent of the company, calling it a 'fantasy.' "She claims that Sridhar transferred a greater interest in the company to others many years ago, but this is not true. She claims he owns over 80 percent of the company and she wants half of that, but he never owned that interest in the first place. Her case is built on a fantasy that he is the majority owner despite records showing the true ownership."
Melcher stressed that the bond order lacks legal grounding and has been contested. "There is no legal authority for such an order. A subsequent judge acknowledged that the amount seemed absurd," he said. He added that the matter is unrelated to alimony, as no such request has been made. "This has nothing to do with alimony by the way, as the wife has not even sought an order for support." Vembu remains in full compliance with valid court directives, with the $1.7 billion bond deemed invalid and under appeal. The associated receivership order has been stayed. "The $1.7 billion bond order is invalid, cannot be complied with, and is on appeal. The receivership order has been stayed on appeal."
In closing, Melcher expressed admiration for his client, distancing the case from Vembu's character. "I am honoured 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." He suggested the wife's lawyer may have misled her as well, racking up millions in fees. Melcher anticipates a full trial to resolve the disputes, labelling the recent report as recycling "old news" from an ill-founded emergency ruling. "Unfortunately she misled a judge into believing her claims might be true last year on an emergency application where we had no reasonable chance of countering the claims. That is old news and we will have a full trial on the issue eventually."
