After hearing the arguments on the bail plea, District Judge B P Deshpande reserved the verdict till next Wednesday.
Defence lawyer Surendra Desai said the FIR against Kamat was filed even before obtaining a copy of the judgement from the US court.
"Preliminary inquiry should be conducted before registering FIR. How can FIR be registered without obtaining documents from the US? In a way there is no evidence, no direct link with the prosecution. Should a (former) head of state be treated like this?" Desai argued.
The alleged bribery scam of USD 976,630 for the project included kickbacks to a minister, the details of which have not been disclosed by the US Department of Justice.
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Special public prosecutor G P Kirtani said Goa Police have clear evidence against Kamat.
"The statements have clearly mentioned that the money was delivered to you," he said referring to the arguments by the defence lawyer.
Desai had told the court that Kamat was not the chief minister when the project was conceived between 2004-05 and a consultancy contract for it signed in 2007.
"There is more to it than meets the eye. I had nothing to do with the entire scope of (project) negotiation," he had said on behalf of Kamat.
The 61-year-old Congress leader has been booked in the scandal which took place in 2010 when he was the chief minister heading a Congress-led government but came to light this year. Police have already arrested four people, including then Public Works Department Minister Churchill Alemao, and questioned Kamat twice.