530 5.7.1 Client was not authenticated Exchange 2010

Problem:

The sending host is receiving fallowing command on SMTP handshake from your mail server “530 5.7.1 Client was not authenticated”.

Test :

Open DOS  and type below
telnet <smtp-host> <smtp port>

e.g telnet 192.168.111.1 25  and then type
helo ( hit enter)
you received like below ouput
220 mail2.smtp25.org Microsoft ESMTP MAIL Service
250 mail2.smtp25.org Hello [10.10.10.10]
and then type
mail from:Test@Gmail.com ( Use yours mail) hit enter
530 5.7.1 Client was not authenticated

Solution:

Now lets take care of that, open EMC , go under your Server configuration, hub transport server default receive connector, properties, click on last tab “permission Groups” place check mark into “Anonymous users” click apply and ok.

now go back to DOS and type the same commands and you should be get  250 2.1.0 Sender OK.