Amazon (AMZN  ) is losing its grip on Future Group, an Indian retail firm it had invested in, as legal proceedings stall and an out-of-court settlement fails to materialize.

Amazon's legal battle began in 2019 after the company acquired a stake of half of the then-named Future Coupons. Future Group would later agree to an acquisition by Reliance Retail (parent company Reliance Industries Limited, (RLNIY  )) for $3.4 billion. Amazon undertook legal action in India and simultaneously attempted arbitration in Singapore.

Legal proceedings have become increasingly bogged down in the years since Amazon uses every method to avert Reliance's takeover. Initially, Amazon had a contract with Future Group that prohibited its sale to specific companies. The Competition Commission of India (CCI) voided the deal entirely, ruling that the company misled regulators while seeking their approval. Attempts to settle the matter out of court failed, with Future Group's representative telling India's Supreme Court, "We had no money, which is what we've been telling all forums. Landlords are terminating our leases."

That landlord happens to be Reliance, which has begun terminating Future Group leases due to two years of missed rent payments. For some stores, like Future Group's Big Bazaar, Reliance has transferred the leases to itself but sublets them back to continue operating under the same branding. Reliance has begun to transfer stores to its branding in other locations. Despite ongoing legal action, Reliance has already started a de-facto takeover.

Future Group continues to protest the ongoing takeover by Reliance. With India's Supreme Court set to rule Wednesday, Amazon could potentially see relief by the court blocking the continuing acquisition and allowing arbitration between it and Future to continue through India's legal system. Of course, it is also possible for the court to enable Reliance to collect the properties due to the unpaid rent.