A whopping $700 million (about Rs 3,700 crore) is paid annually as bribe in India for land administration services, a joint study by United Nation's body FAO and Transparency International has observed.

According to the working paper 'Corruption in the Land Sector', jointly prepared by Food and Agriculture Organisation and global anti-graft body Transparency International, weak governance has increased instances of corruption in land-related issues.

"A study in India estimates that $700 million (about Rs 3,700 crore) worth of bribes are paid annually by users of the country's land administration services," the paper said.

The working paper, which includes studies conducted in more than 61 countries, found that corruption in the land sector varied from small scale bribes and fraud to high-level abuses of government power and political positions, FAO said in a statement.

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Land administration services include land legislation, registration, valuation/taxation, land-use planning, land allocation and information.

The paper reveals that land related corruption was not confined to India but is a worldwide phenomenon.

In Kenya, the average bribe paid by those dealing with government land agencies was $65 in 2011.

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Likewise in Mexico, a recent study reveals that illegal payments to land authorities ranked among the top 10 services plagued by bribery in the country, it said.

A bribe has to be paid at least once out of every 10 times a person solicits a land permit, the survey said, adding that in Bangladesh the situation was even worse.

Explaining the relation between corruption and increasing pressure on land use, the paper said: "Unprecedented pressures on land have been created as new areas are cultivated and taken over by expanding urban centres or abandoned due to degradation, climate change and conflict."

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Increasing investment in biofuels, as a way to mitigate climate change, is one of the pressures affecting land use in many countries, it pointed out.

"...especially since many countries with governance and corruption challenges are considered the most attractive destinations for biofuel investment," the paper observed.

According to the study, corruption in land-related issues hinders the growth and development of the country.