Bangladesh's Supreme Court has refused bail to former prime minister Khaleda Zia and ordered that a corruption case against her proceed.

Thursday's decision reverses an order by a lower court on Sunday granting bail to Ms. Zia and ordering a stop in court proceedings.

The army-backed interim government filed an appeal on Tuesday against the order.

Ms. Zia was arrested in September on charges of corruption in awarding government contracts.  One of her sons, Arafat Rahman, is also in custody in connection with the case.

Bangladesh has been under a state of emergency since January when an army-backed interim administration took power after months of political turmoil.

The interim administration has rounded up dozens of bureaucrats and politicians as part of a pledge to clean up
Bangladesh's notoriously corrupt politics.

Former prime minster Sheikh Hasina, Khaleda Zia's bitter rival, has also been arrested on graft charges.

Some information for this report was provided by AFP, AP and Reuters.