Indrani has "confessed" to her role in the crime, a senior police officer said without providing further details.
Indrani's husband Peter Mukerjea underwent a second round of marathon questioning by the police which also interrogated two other arrested accused--her former husband Sanjeev Khanna and driver Shyam Rai. Peter, the former Star India CEO reached Khar police station around 11:30 in the morning and the questioning was still in progress.
Since her arrest late last month, Indrani had been maintaining that Sheena was very much alive and living in the US.
Besides his wife, Peter was brought face-to-face with Sanjeev Khanna and driver Shyam Rai, both of whom are alleged to have actively participated in commission of the offence. Today's interrogation is being supervised by DCP Satya Narayan Chaudhary.
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Peter was questioned for nearly 12 hours yesterday.
Meanwhile, senior lawyer Mahesh Jethmalani, who is giving legal advice to Peter Mukerjea, said he was not aware of Indrani's confession.
Jethmalani's junior Gunjan Mangala is representing Indrani in the case.
Jethmalani said he was not aware of what defence could be made of Indrani as her lawyer, who is his junior, has not been given "free and private" access to her client.
Every time she (the lawyer) met Indrani, it was in the presence of 5-6 police officers, he said, adding "as far as Mr Peter Mukerjea is concerned, the question of defending him does not arise because he is not an accused".
Sheena was engaged to Rahul, Peter's son from an earlier marriage, when she was allegedly murdered on April 24, 2012.