Rai was earlier arrested by Mumbai police under the Arms Act and during his interrogation in that case he had spilled the beans about the killing of Sheena Bora, Indrani's daughter.
He is the first witness to depose in the sensational murder case.
Police sub-inspector Ganesh Dalvi had earlier deposed in the court on February 23. However, his examination could not continue after the defence raised an objection, saying Dalvi should not disclose what Rai had told him about Sheena Bora murder case.
Dalvi today told the court that Rai took the police to suburban Bandra and showed the spot from where Sheena was kidnapped.
"Later he took us to the Raigad (Pen taluka) and pointing towards a stone Rai told us that Sheena's body was burnt there," Dalvi told the court while he was being examined by special public prosecutor Kavita Patil.
Dalvi also told the court that he took police records about burning of a corpse.
He also told the court that later he searched the residence of Rai and recovered many things besides Sheena's photo.
The defence later moved an application saying that they would not cross-examine Dalvi before examining Rai.
Key accused Indrani, her husband and former media baron Peter, and Khanna have been accused of conspiracy and murder of Sheena Bora, Indrani's daughter from an earlier relationship.
While Sheena was killed on April 24, 2012, the case came to light only in 2015 after Shyamwar Rai was arrested in another case.
Rai was also arrested in the murder case but he turned an approver last year.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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