Kundra was arrested by police on July 19 along with 11 other people on charges related to the alleged creation of pornographic films.
The duo approached the sessions court after a metropolitan magistrate court denied bail to them on July 28.
Earlier, their bail applications were rejected by Esplanade magistrate court, stating that the release of the accused will 'hamper the investigation'.
The court stated that the investigation is still going on and if the accused are released on bail, then they will abscond and the possibility of tampering with the evidence cannot be ruled out.
Raj Kundra and his associate Ryan Thorpe were arrested by the Mumbai Crime Branch on July 19, and are presently in judicial custody.