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.
In 2010, South Wales Police launched an investigation into the death of 39-year-old Colette Davies which occurred in India in 2004.
Following a joint investigation with Himachal Pradesh State Police in Northern India and in consultation with the Crown Prosecution Service, a 50-year-old man was charged with her murder and fraud.
During the investigation which continued following the charge, new and significant information came to light which has been reviewed by the CPS.
As a result of this review it has now been decided that proceedings will be discontinued.
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Fine and sunny tomorrow morning with lots of sunshine to start the day. Feeling colder though, with maximum temperatures of 13°C.
Kathryn Tresilian reports from the town where the body of a 47-year-old woman was found dismembered in Pontypridd on Friday.
Some bright spells this afternoon, with outbreaks of rain. Top temperature 15°C.