Dhaka, January 13 (DPA): Former Bangladeshi prime minister Sheikh Hasina Sunday pleaded not guilty to charges of corruption in an anti-graft court, claiming the interim government was trying to smear her and her family.

Speaking from the dock, Hasina, who was prime minister between 1996 and 2001, said the Anti-Corruption Commission had fabricated a case of extortion against her to disqualify her from future elections. Hasina's younger sister Sheikh Rehana and her cousin and former health minister Sheikh Selim were also indicted in the case filed by local businessman Azam J. Chowdhury.

The court hearing is scheduled to start next week, judicial officials said.

Hasina was arrested in July after the government accused her of taking bribes worth half a million dollars in relation to a government contract for power plants. The 60-year-old leader Hasina interned in a bungalow while her sister left the country to evade detention.

Meanwhile, the military-backed inteim government declared at the weekend that a general election would be held before the end of the current year to restore democratic rule in the Muslim country.

Chief Adviser Fakhruddin Ahmed made the announcement of the national polls during a televised address to the nation. Ahmed also announced that restrictions on political activities would be withdrawn.

However, Ahmed - the de facto prime minister of the country - ruled out the possibility of advancing the polls to June or July as demanded by the major political parties.

The former central bank governor was appointed head of an advisory council, which is running the country. Bangladesh is still reeling from the aftermath of a number of natural disasters as well as political turmoil.

President Iajuddin Ahmed declared a state of emergency a year ago, curbing fundamental rights in an effort to quell the escalating tension.