A special CBI court, while rejecting Indrani's bail plea, observed that the accused was facing trial on a serious charge and several important witnesses like Rahul Mukerjea, Indrani's stepson, are yet to record their evidence in the case.
Indrani had sought bail citing ill-health and alleged threat to her life.
This was the second time the court rejected her bail plea.
Indrani, lodged in Mumbai's Byculla prison, in her application had mentioned two occasions when she was hospitalised -- once for suspected drug overdose and again in April when she complained of difficulty in breathing.
She had said someone inside the jail might have tried to poison her.
She was arrested in August 2015 for allegedly murdering her daughter Sheena on April 24, 2012.
Apart from Indrani, the others arrested in the case are her husband and former media baron Peter Mukerjea, and her former husband Sanjeev Khanna.
Indrani's driver, Shyamwar Rai, was also arrested in the case but he later turned approver. Rai's bail plea was rejected Friday.
The trial in the case began last year and over 10 witnesses have deposed so far.