Retired Supreme Court Judge M B Shah is the chairman of the one-member commission appointed by the state government on August 17, 2011.
Making its case against Modi, People's Union for Civic Liberties today demanded that the state government should furnish details about the land given to various industrial houses and also sought to know whether rules were followed while allotting the plots.
Special public prosecutor appointed by the Gujarat government, Bhaskar Tanna, argued that the charges made against the Chief Minister were baseless as the state government allotted land as per the rules.
Media was not allowed inside the court room. Further hearing would be held by the Commission next Monday.
The Modi government had set up the Commission in the wake of opposition Congress submitting a memorandum to President Pratibha Patil in June 2011 alleging that the state government under Modi had indulged in large scale corruption and favouritism to industrial houses.
The terms of reference of the Commission include inquiry into the allegations of Congress regarding favouritism toward certain industrial houses, state government's negligence in this regard, if any, and any other allegation that the Commission deems fit to inquire.