Unfortunately if the visa was rejected once you cannot submit a simple sponsor letter (original or scan/fax). Your sponsor needs to go to the Foreigners Office in the County (Miltenberg) of Oberburg:
http://www.landkreis-miltenberg.de/L...nderwesen.aspx
There your sponsor has to provide proof that they will support and accommodate you. When the officer is satisfied that the plan is genuine, he will prepare a bond document which your sponsor will sign and then mail to you in India. This bond document needs to be attached to your visa application, and the consulate usually issues the visa on the spot without further questions.
I had a similar situation when a friend (at the time 28years old IT professional) wanted to visit me. When he submitted the application at the consulate, they immediately advised him not to submit it, but get the above. Once I sent him everything the visa was issued.