Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, May 20, 2024. My name is Nelson John. Let's get started:

What used to be the poster child of Indian startups and had a presence everywhere, from the FIFA World Cup to the Indian Cricket Team’s jersey - Byju’s - has witnessed a fall from grace over the last two years. The company, which was once a unicorn saw a 95% nosedive in its value. The Bengaluru-based company’s woes do not seem to end. Rajnish Kumar and T.V. Mohandas Pai, advisors on the panel of Byju’s parent company Think & Learn, have decided not to extend their tenure beyond June 30. This adds to the challenges faced by the company, as it navigates board exits, financial troubles, and increasing litigation. Both advisors have chosen to leave due to the company's ongoing legal entanglements, report Mint’s senior editors Gopika Gopakumar and Varun Sood. The advisory panel, established in July last year following notable resignations from the board due to governance concerns, was part of a strategy to address these corporate governance issues. Unfortunately, Byju's continued to face operational challenges, including the inability to secure additional funding, leading to layoffs and delayed salaries.

In the past three years up to March 2023, a staggering revelation came from India's food safety authorities: out of 43 million food samples tested, a quarter did not meet domestic food safety laws. Alarmingly, one in six of these were found to be either 'unsafe' or 'substandard,' while the remainder failed to adhere to labelling laws, often misleading consumers with incorrect information. While India’s food safety regulator, the Food Safety and Standards Authority of India or FSSAI, did initiate litigation against these outliers, what they forgot to do was inform the citizens about them. Fssai and state agencies have not sufficiently informed the public about the specific manufacturers or brands involved, leaving consumers uninformed about potentially harmful products. The lack of transparency is evident in Fssai’s 2021-22 annual report, which notably omits any mention of product recalls or license cancellations — standard practices in many other countries to protect consumers. Mint’s Sayantan Bera and Suneera Tandon spoke to FSSAI insiders to understand why the central government agency has failed to crack the whip on companies selling substandard products, amidst global scrutiny of Indian packaged food brands. Sayantan and Suneera also break down the challenges being faced by the FSSAI including a lack of testing labs.

The Financial Services Institutions Bureau, an autonomous body under the central government, is set to conduct interviews on May 21 to recommend a candidate for the chairman's post of the country's largest bank - the State Bank of India. This decision will be finalised on the same day, replacing the incumbent Dinesh Kumar Khara who is slated to retire on August 28.

The candidates in consideration for the chairman's position are State Bank of India’s (SBI) three managing directors—C.S. Setty, Ashwini Kumar Tewari, and Vinay M. Tonse. Mint’s banking editor Gopika Gopakumar reports on the closely monitored selection process. C.S. Setty, the most senior among the candidates, has a background in managing the bank's stressed assets and comprehensive experience across various banking verticals. Ashwini Kumar Tewari brings a strong international and corporate banking portfolio, having managed SBI's operations in the U.S. and as the former CEO of SBI Card. Vinay M. Tonse, who oversees retail banking, has a deep understanding of the domestic market and a record of effective team-building.

Last year, online gaming companies in India were hit with a significant tax demand totaling over ₹1.12 trillion from their past revenues, leading to a legal challenge currently pending in the Supreme Court. The GST Council, the central body overseeing indirect taxation, is set to deliberate on this issue, considering the industry's plea for relief from these substantial tax claims. Previously, the tax regime for online gaming was ambiguous, with companies paying an 18% GST on platform fees or commissions, which range from 5% to 20% of the deposits. However, a dramatic shift occurred on October 1, 2023, when the GST Council imposed a 28% tax on the full face value of deposits, retroactively applying this rate to past earnings. Mint’s Gireesh Chandra Prasad reports that the central and state GST officials are currently reviewing the grievances expressed by the industry regarding the notices for the period leading up to October 2023. 

As the summer holiday season kicks off, the limitations of the Indian passport become glaringly apparent. According to the Henley Passport Index, out of 227 possible destinations, Indians can enter 31 countries without a visa and get a visa-on-arrival in 30 countries. This totals visa-free access to just 61 countries, leaving the vast majority requiring a visa obtained through traditional, more cumbersome means. Compare that with Brazil, where folks enjoy visa-free access to a whopping 173 countries. Even Russia, despite facing international sanctions, can access 120 countries relatively freely. It’s a bit of an eye-opener, especially considering India’s status as one of the world’s fastest-growing economies. Visa-free access isn't just about economics, writes independent journalist Deepa Vasudevan. It's also influenced by a mix of factors like geography and reciprocal agreements. Take the European Union or the Asean bloc, for instance, where members enjoy hopping across each other's borders without much fuss. 

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Show notes:

Byju’s woes worsen: Rajnish Kumar, Mohandas Pai to step down from advisory panel

In a pickle: Why it’s time for Fssai to wake up and crack the whip

At India's biggest bank, a new chairman to be anointed this week

GST Council to hear gaming firms' plea on past tax demands

Mint Primer: Beam me up, Scotty... into the boardroom

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