The killing of Sheena Bora had come to light in August, 2015 after Rai, who was arrested in another arms case, revealed it.
Rai is currently being cross-examined by the lawyers of accused Sanjeev Khanna.
Khanna's lawyers, Niranjan Mundergi and Shreyansh Mithare, asked Rai about the presence of drains near his locality, indicating that he could have dumped the gun used in the crime near his house.
During his examination, Rai also told the court that he served as a driver to both Sheena and her brother Mikhael.
The lawyers asked him about the long conversations he had with Mikhael between January, 2012 and April, 2012.
Rai told the court that he did not remember the reasons behind those calls and the nature of the conversations between them.
He also told the court that he was not aware that the punishment for murder was severe than that for possessing illegal arms.
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