Zagorec is suspected of abuse of office and embezzlement of some five million dollars from the state budget.
The retired general did not enter the court building at the main entrance where the press were waiting. Spokeswoman for the State Court in Vienna, Alexandra Mathes briefly told reporters that the hearing started at 9AM.
The public has not yet been informed about the names of Zagorec's new lawyers, after his Vienna attorneys from the Lansky & Ganzger law firm decided in April not to represent the Croat any longer.
Zagorec was arrested in Vienna in mid March, following an international arrest warrant, issued by the Croatian judiciary. At the initial hearing Zagorec said he was opposed to his extradition to Croatia. He was released from custody on one million euro bail.
The Zagreb County State Prosecutor's Office indicted Zagorec, who has been living in Austria for the past seven years, for abusing his position and damaging the state budget by some five million dollars. Zagorec is suspected of stealing jewels allegedly deposited in the Defence Ministry treasury as collateral from a German arms dealer.
Austria also launched a probe against Zagorec. The Prosecutor's Office in Klagenfurt requested the State Court in Vienna to launch an investigation into Zagorec's bank accounts on suspicion of money laundering in Hypo Alpe Adria bank.