Zia, 72, and Hasina, 70, are known as the 'Battling Begums' for their bitter rivalry that has poisoned Bangladeshi politics for nearly three decades.
Zia, the three-time former prime minister, was sentenced to five years rigorous imprisonment by Dhaka's Special Court in connection with the embezzlement of 21 million taka (about USD 250,000) in foreign donations meant for the Zia Orphanage Trust, named after her late husband Ziaur Rahman, a military ruler-turned-politician.
She added: "The reign of brutality unleashed by Khaleda even shook the throne of the almighty... so her conviction was very much natural".
She said that in 2015, Zia declared she would not return home without toppling Awami League government and to make this happen, she opted for brutal violence sitting in her office.
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The BNP eventually boycotted the elections and became the opposition having no representation in parliament.
The verdict simultaneously sentenced Zia's "fugitive" elder son and Bangladesh Nationalist Party (BNP's) senior vice president Tarique Rahman as he was tried in absentia. Rahman and four others have been sentenced to 10 years in prison.
Judge Mohammad Akhtaruzzaman, who delivering the judgement, said: "The case was proved beyond any doubt against the accused".
The case is one of dozens pending against Zia, who has been a rival of Hasina for decades. The charges against her had already led to her boycotting polls in 2014, which triggered widespread protests at the time.
Legal experts said the verdict may jeopardise her career as she may be disqualified from contesting polls, including the general elections slated for December.
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