Victoria's Office of Public Prosecutions on Friday confirmed it would not directly indict William Swale, 66, over the deadly November 2023 crash in Daylesford.
"This decision has been conveyed and explained to the victims and victims' families," the OPP said in a statement.
"We understand that this is not the outcome they were hoping for."
Five people were killed and six injured outside the Royal Daylesford Hotel. (James Ross/AAP PHOTOS)
Swale, a type-1 diabetic, suffered a severe hypoglycaemic episode before he passed out behind the wheel and crashed into patrons seated outside the Royal Daylesford Hotel at 6.07pm on November 5.
Pratibha Sharma, 44, her daughter Anvi, 9, and partner Jatin Kumar, 30, and their friend Vivek Bhatia, 38, and his son Vihaan, 11, were all killed, while six others were injured.
Swale was charged by police with 14 offences, including five counts of culpable driving causing death, negligently causing serious injury and reckless conduct endangering life.
He faced a three-day committal hearing at Ballarat Magistrates Court in September where diabetes experts, police, paramedics and witnesses to the crash gave evidence.
Prosecutors alleged Swale had ignored warning signs about his declining glucose levels and was negligent in driving from 5.36pm that evening.
The OPP acknowledged the surviving crash victims and families who were "profoundly affected". (James Ross/AAP PHOTOS)
But Magistrate Guillaume Bailin found Swale was already suffering a severe hypoglycaemic episode at that time so his actions of driving were involuntary.
"No hypothesis of guilt is open given how the Crown have made their case," Mr Bailin told the court.
The magistrate struck out all 14 charges against Swale, finding there was not enough evidence to support a conviction.
It was open to the OPP to directly charge Swale if they believed the magistrate had made an error in discharging him.
But the OPP said it had reviewed the crown case and the evidence of two medical experts, who could not rule out Swale was already experiencing a severe hypoglycaemic episode before the crash.
"The experts' evidence on this point effectively deprived the crown case of reasonable prospects of success," the OPP statement said.
The OPP acknowledged the surviving victims and the families who were "profoundly affected" by the crash.
"We extend our sympathies to all who have been impacted by this terrible incident," the statement said.
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