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The Crown Prosecution Service, which worked "closely" with South Wales Police in its investigation into the death of Colette Davies, released a statement when the case against John Clifton Davies was dropped in March.
It says that the police got new statements from two people in India - "potentially direct eyewitness evidence" - which "could be said to undermine the prosecution case."
This meant that no evidence was offered against him, and he was formally found not guilty of murder and fraud.
John Clifton Davies, who is originally from Milton Keynes, was accused of killing his wife Colette to claim £132,000 in her life insurance payout.
They married in 2003, and went on a delayed honeymoon to India 14 months later.
A week into the holiday, Colette fell more than 80ft from a viewing point at a steep gorge in the Imichal Pradesh region.
Her body was flown back to her home town of Bridgend where she was cremated after an inquest recorded an open verdict.
South Wales Police says "new and significant information came to light" which led to the case against John Clifton Davies to be dropped.
He has criticised the force for holding him for 16 months without bail, before finally speaking to key witnesses.
A man who was imprisoned for 16 months after being accused of murdering his Welsh wife, has criticised South Wales Police over their handling of the case.
Collette Davies, from Bridgend, was found dead at the bottom of a ravine in a remote part of India during her honeymoon with John Clifton Davies in 2004. Mr Davies was arrested seven years later and charged with murder and fraud, but was cleared of all charges last month.
He told this morning's Daybreak that his time in prison was "horrendous", said "a lot of questions have to be asked" about South Wales Police and that his lawyers are "looking serious" into what steps he can take now.