"Shah's statement is not believable, as none of the other accused mentioned about her presence at the Sola Civil Hospital," Vyas told the court here.
The matter will be next heard on Friday.
Shah had told the court that he met Kodnani in the Gujarat Assembly in Gandhinagar and later at the Sola Civil Hospital in Ahmedabad on the day the riots took place.
The Naroda Gam case is one of the nine major 2002 communal riot cases, which were investigated by the Supreme Court-appointed Special Investigation Team.
Eleven people belonging to the Muslim community were killed in the Naroda Gam riots during a bandh call made to protest the Godhra train burning incident of February 27, 2002.
Besides rioting and murder, Kodnani has also been charged with criminal conspiracy and attempt to murder in the case.
She was convicted and sentenced to 28 years in jail for her role in the Naroda Patiya riots, in which 96 people were killed. However, in April this year, the Gujarat High Court had acquitted her.