Gurdhev Singh Dhillon was convicted in October 2005 and sentenced to four years in jail in connection with a sexual assault which allegedly took place in 2004.
Crown spokesperson Neil Mackenzie says special prosecutor Peter Wilson was appointed to review the case after a search for a second attacker turned up new evidence.
"Mr. Wilson has concluded that a miscarriage of justice occurred in the case. The conclusion relates to the fairness of Mr. Dhillon's trial based on the non-disclosure to him of material evidence," he said.
Mackenzie would not release any further details.
He says it's now up to Dhillon to apply to have the conviction reversed.
In a written statement, Surrey RCMP Chief Supt. Bill Fordy apologized for the incident.
"I recognize, and understand, that the general public will have concerns about this incident," he said.
"I share those concerns and deeply regret the impacts these mistakes may have had on all those involved. As the officer in charge of the Surrey RCMP, I apologize for the mistakes that were made."
Two other men, Mohammaed Zaaid Ukhttar and Sital Singh Bhati, have now been charged in connection with the alleged sexual assault.