"These two will not be part of this edition of the IPL," its chairman Rajeev Shukla said.
The IPL's decision comes after reports emerged in the Australian media that Cricket Australia (CA) has decided to slap a 12-month ban on Smith and Warner and a nine-month ban on Cameron Bancroft.
Both Smith and Warner had stepped down from their captaincy of Rajasthan Royals and Sunrisers Hyderabad respectively.
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