"We have filed our reply and have said that we don't have any objection in making Rai an approver provided that he reveals all the truth in connection with the case," said a CBI official.
Special CBI prosecutor Kavita Patil, on May 17, had sought more time to file its reply on the desire expressed by Rai to turn approver in the case. Special Judge HS Majahan had then adjourned the case until June 6.
Earlier, on May 11, Rai had sought to turn approver, saying he wants to "disclose all truths" as he had taken part in Sheena's killing by strangulation and was present at the time of the murder in 2012.
Recording his statement before a special CBI court then, Rai had said he was under "no pressure, threat or coercion" to reveal the facts in the case and was "repentant" about his act.
The development came after Rai, an accused, wrote a two-page letter to the court last month seeking pardon in the case while stating that he wants to tell all.
Rai was the first accused to be arrested in the case in August 2015.
The killing came to light after Rai was picked up in connection with an arms case and later spilled the beans.
Rai last year had recorded his confessional statement before the magistrate under the provisions of section 164, which unlike the police statement, is admissible in the trial.
Indrani, her former husband Sanjeev Khanna and Rai had allegedly strangled Sheena (24), Indrani's daughter from an earlier relationship, inside a car in April 2012. Her body was found in a forest in Raigad. The crime, which came to light in August last year, is allegedly linked to certain financial dealings.
The trio were arrested in August last year while Indrani's husband and former media baron Peter Mukerjea was arrested in November. According to CBI, Peter was part of the murder conspiracy.
While Peter (59) and Khanna are lodged in Arthur Road prison, Indrani (43) is in Byculla womens' jail.
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