Amazon.com Inc. plans to launch criminal court proceedings against its Indian partner Future Retail this week for allowing the transfer of assets to a major rival despite a legal ban, three sources with direct knowledge of the matter told Reuters.

For more than a year, Amazon and Future Group have been in a legal standoff that has halted the sale of Future's assets worth $3.4 billion to Reliance Industries.

Amazon successfully halted Future's asset sale to rival Reliance since 2020 by citing violation of certain contracts.

Future, India's second largest retailer, denies any wrongdoing. Amazon's position has been backed by a Singapore arbitrator and Indian courts.

Reuters reported this week that Reliance had started to take over around 500 of Future's stores, rebranding them as its own outlets.

Reliance had previously transferred leases of some of Future's major supermarkets to its name, but allowed Future to continue operating them. Sources said that Reliance has now started taking over them after Future failed to pay the rent.

Amazon plans to initiate criminal proceedings against Future in a New Delhi court, and has urged the court to order an investigation into the matter, one of the sources who has direct knowledge of the plans said.

Two other sources said the lawsuit could be filed as early as this week.

Future, Amazon and Reliance did not immediately respond to Reuters' emails seeking comment.

Amazon alleges that Future hid information during the legal proceedings and allegedly transferred leases of its stores to rival Reliance, even though a Singapore-based arbitrator blocked any transfer or settlement of assets in the ongoing dispute Yes, first source added.

"This is going to be Amazon's last attempt (to stop the deal)," said this source.

The plan to start criminal court proceedings would mark a significant escalation in the legal battle between Amazon and its Indian retail rivals - Future Retail and Reliance, which is led by Indian billionaire Mukesh Ambani.

The protracted fight over Future's assets is seen as a battle for retail supremacy between Reliance and Amazon in India's booming retail market.

In blocking the Futures-Reliance transaction, Amazon has long argued that Futures violated the terms of a 2019 deal in which the US company invested $200 million in an Indian company's share.

In blocking the Futures-Reliance transaction, Amazon has long argued that Futures violated the terms of a 2019 deal in which the US company invested $200 million in an Indian company's share.

Debt-laden Future had earlier said that Amazon was unfairly interfering in its retail business