The bail by the Bombay High Court came more than four years after his arrest.
The court observed there is no prima facie evidence of his involvement in the crime.
Justice Nitin Sambre granted him bail on a surety of Rs 2 lakh.
However, on the request of Central Bureau of Investigation (CBI), the High Court stayed its order for a period of six weeks so that the probe agency could file an appeal against the order, according to reports.
Also read: CBI opposes Indrani Mukerjea’s bail plea
Peter Mukerjea was arrested on November 19 in the year 2015, in the Sheena Bora murder case.
Notably, his former wife Indrani Mukerjea, who is originally from Assam, is the main accused.
Meanwhile, the court has directed Peter Mukerjea not to contact his daughter Vidhi, son Rahul Mukerjea and other witnesses in the case.
According to the CBI, Peter Mukerjea along with Indrani Mukerjea and her previous husband Sanjeev Khanna entered into a criminal conspiracy to kill Sheena Bora.
Sheena Bora, 24, who was allegedly killed on April 24, 2012, was Indrani Mukerjea’s daughter from an earlier marriage.