Peter's petition today came up for hearing before Justice Ajay Gadkari. The lower court has rejected his bail plea twice.
Additional Solicitor General Anil Singh, who appeared for CBI, argued that Peter's wife Indrani Mukerjea, the prime accused in the case, had given him complete information about the plan to murder Sheena, her daughter from earlier relationship.
When Peter learnt that Sheena was Indrani's daughter - earlier she had told him and others that Sheena was her younger sister - the situation changed and it resulted in Sheena's murder, ASG Singh said.
Peter's son from earlier marriage, Rahul, allegedly had an affair with Sheena, and Peter was afraid that if they got married there would be a property dispute, he said.
The CBI produced the case diary and related documents for the court's inspection, but said it could not show them to the defence as the investigation was still on.
The HC asked the CBI to inform on the next date, October 15, whether it was ready to show the documents to Peter's lawyers, or whether the agency would not rely on them.
Peter was arrested in the case on November 19, 2015. Earlier, in August, 2015, the city police arrested Indrani, her former husband Sanjeev Khanna and her driver Shyamvar Rai.
Indrani, Rai and Khanna allegedly strangled Sheena (24) in a car here in April, 2012 and disposed of the body in a forest in Raigad district. According to CBI's charge sheet, the murder was the fallout of a financial dispute in the family.