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HI Lakshmi, The latest version available for Raspbian is 2.76.5 I personally have had no issues with it, without doing the dns root purge on several RPi's that I have set up but has been reported as a bug on some setups.

try uninstalling dnsmasq with sudo apt-get purge dnsmasq
and then use sudo apt-get autoremove , just to do a general clean up.
Then hopefully you can try to reinstall dnsmasq (2.76) with the apt-get command.