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.
In November 2011 the CPS advised that, based on the evidence available at that time, John Clifton Davies should be charged with murder and two counts of fraud. As is normal in cases such as this, the police investigation continued after charges were laid.
As part of that investigation, officers from South Wales Police recently visited the Himachal Pradesh region of India.
During that visit the police became aware of significant new information including statements from two people, who had not previously come forward, who could potentially provide direct eyewitness evidence. This new information could be said to undermine the prosecution case.
In the light of these developments, the CPS reviewed the case again and concluded that the evidential requirements laid out in the Code for Crown Prosecutors are no longer met in relation to both the murder and fraud charges.
More top news
Cloud will thicken across all parts overnight with outbreaks of rain.
The Football Association of Wales said it is 'delighted' to be offered a chance to bid.
Ifthir Ahmed told ITV News 'a lot of work' is being done in Newport in an attempt to prevent extremism within the community.