The special CBI court here had rejected his first bail application in February.
Peter's lawyer Kushal Mor filed the second bail application in the special court yesterday.
There was no further justification for keeping him in custody as there were no "reasonable grounds" in the charge sheet to believe that "he has been guilty of offences with which he is charged", it said.
As per the charge sheet, Peter's motive for committing the crime (participating in the conspiracy to murder Sheena) was that he was against the relationship between Sheena and his son Rahul Mukerjea.
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Peter, whose wife Indrani Mukerjea is the prime accused in the case, was arrested on November 19. He is lodged in the Arthur Road jail here.
Other co-accused, Indrani's former husband Sanjeev Khanna and her driver Shyamvar Rai, are in the same jail, while Indrani is in the Byculla women's jail.