A former Lands Department inspector and a developer have been jailed by the District Court for bribery related to Yuen Long village house developments.

Lee Yue-yuen, 61, received a jail sentence of 39 months and was ordered to pay $300,000 restitution to the Government, while Fung Ping-yan, 50, director and shareholder of two development companies, was sentenced to 45 months' imprisonment for offering bribes to Lee and a finance firm employee.

The bribery and conspiracy offences took place between 1990 and 1999.

The court heard that Lee accepted $500,000 to $600,000 from Fung as rewards for creating and/or providing the department records or documents required for the redevelopment of village houses.

Lee also conspired with the Fung and the finance worker by dishonestly submitting to the firm false documents in support of applications for mortgages.

ICAC investigations found Fung had paid $10 million in bribes to the finance worker for assistance in granting the loans.

Fung admitted two counts of conspiracy to offer advantages to an agent, two of conspiracy to offer advantages to a public servant, and one of conspiracy to defraud. He subsequently testified in Lee's trial.

Lee was found guilty of two counts of conspiracy for a public servant to accept advantages, and one of conspiracy to defraud.