Shyamvar Rai was initially arrested by Khar police in the said arms act case in the year 2015 before he was arrested in the Sheena Bora murder case.
Indrani has always maintained that Sheena has not been murdered and is alive and had gone abroad for her education in 2012, although Indrani could never prove her claims in any way.
The release came after the six-week stay on the Bombay High Court order granting the former media baron bail in the murder case ended on Thursday with the CBI not moving an appeal before the Supreme Court.
Peter Mukerjea, arrested in the sensational Sheena Bora murder case in 2015, had moved the bail application in November last year.
Indrani is lodged in Byculla Jail in Mumbai and had been rushed to the hospital twice last week after she complained of headache and double vision.
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