Special public prosecutor Anand Grover told Special Judge O.P. Saini that in an arbitrary decision, then telecom minister A. Raja gave unfair advantage to Swan Telecom.
Advancing the final argument in the case, Grover said the cut-off date for receiving applications was changed from October 10, 2007 to October 1, 2007, and the decision was taken by Raja to favour some firms.
Swan telecom promoter Shahid Usman Balwa, one of the accused in the 2G scam, had prior knowledge of the design of the spectrum allocation process and had kept the demand drafts and other documents ready before hand, the Central Bureau of Investigation said.
The court was hearing the final arguments in the case which will continue on Thursday.
The case pertains to the 2G spectrum allocation in which Raja, DMK Rajya Sabha member Kanimozhi and others are facing trial.
According to the CBI, Raja was biased in allocating 2G mobile airwaves and operating licences to telecom firms, causing huge loss to the state exchequer.
The court framed charges on October 22, 2011, against 14 accused and three companies under various provisions of the Indian Penal Code and the Prevention of Corruption Act.
All the accused, including Raja, are out on bail.