Letter to Sbi

____ February 2009

To,

1. The Manager

State Bank of India

______________

______________

2. The Manager

State Bank of Mysore

______

3. The Manager

Indian Bank

_______

Re: Term Loan Facility of Rs. 160,00,00,000/- sanctioned to Maytas Hill County SEZ Private Limited

1. We are investment companies backed by investors of global repute and are based in Mauritius. We along with JM Financial Trustee Company Private Limited (acting as the trustee of the JM Financial Property Fund - Scheme I and JM Financial Property Fund - Scheme II) executed an Investment Agreement dated January 23, 2008 (the "Investment Agreement"), inter alia, with Maytas Properties Limited (“Company”), Maytas Estates Private Limited (“MEPL”) and 13 Individual Promoters headed by B. Rama Raju s/o Ramalinga Raju.

2. Pursuant to the terms of the Investment Agreement, we have subscribed to compulsory convertible debentures, for a sum of Rs.520,00,00,000 and JM Financial Trustee Company Private Limited has subscribed to compulsory convertible debentures, for a sum of Rs.80,00,00,000, aggregating to a sum of Rs.600,00,00,000/-(Rupees Six Hundred Crores), (“Subscription Price”). As such we have substantial economic interest in the Company.

3. Maytas Hill County SEZ Private Limited (“MHCSEZPL”) is a wholly owned subsidiary of the Company wherein we have made the aforesaid investment.

4. We learnt that the Promoters and the Company committed several incurable material breaches in terms of the Investment Agreement and as such events of default have occurred in terms of the Investment Agreement. It was in these circumstances that we issued a notice dated January 20, 2009 in terms of the Investment Agreement to the Company and other related parties.

5. In our notice dated January 20, 2009 we detailed the various breaches, one of them is related to the facility of Rs. 160,00,00,000/- (Rupees One hundred and Sixty Crores only) sanctioned by you to MHCSEZPL. As per the information...