The team also said the prosecution had not tabled evidence to show the accused had interfered with witnesses or would fail to attend court for the trial.
Mr Mugambi said the submissions were lengthy so he needed time to go through them before determining whether to free Dr Swazuri and the others.
Other that Prof Swazuri, the others in court are NLC commissioner Emma Njogu, Deputy Director of Valuation and Taxation Joash Oindo, businessman Samuel Rugongo, Michael Onyango Oloo and his wife Lilian Keverenge, who is a secretary at the NLC, and the commission's Chief Executive Officer Tom Chavangi.
Others are Godfrey Muritu, Evahmary Wachera, Francis Karimi, Director of Valuation Salome Munubi and Director of Finance Francis Mugo.
The magistrate directed 12 other suspects who were not in court to present themselves to the offices of the Ethics and Anti-corruption Commission offices on Tuesday. They will be arrested if they do not.
The suspects have denied the charges.
For Dr Swazuri and staff of NLC, questions about land compensation for the construction of the standard gauge railway and roads have become a burden that refuses to go away.
In August 2018, the besieged former chairman was charged alongside suspended Kenya Railways Managing Director Atanas Maina over fraudulent compensation for land meant for the SGR, a circumstance that led to a loss of Sh221 million.
There have also been numerous complaints by individuals who claim NLC either defrauded them of their compensation for land they gave up for construction of the SGR, or that it unduly withheld their payment while demanding bribes.