Steve Smith and David Warner have had their A$2.4 million Indian Premier League contracts torn up by the Board of Control for Cricket of India, and banned from this year's tournament.
The latest sanction, which is the most stinging for the duo in a financial sense, comes after they were banned by Cricket Australia for 12 months for their roles in the ball tampering scandal in the Newlands Test at Cape Town.
"The Committee of Administrators (CoA) on Wednesday took cognizance of the developments in the ball tampering incident involving Cricket Australia contracted cricketers – Mr Steve Smith, Mr David Warner and Mr Cameron Bancroft," a BCCI statement said.
"The CoA, in consultation with BCCI Acting President Mr CK Khanna, IPL Chairman Mr Rajeev Shukla and BCCI Acting Hon. Secretary Mr Amitabh Choudhary, has decided to ban Mr Smith and Mr Warner with immediate effect from participation in IPL 2018.
"The BCCI hopes that the cricketers participating in the IPL hold the highest regard for the Spirit of Cricket and Code of Conduct for Players and Match Officials.
"The concerned IPL franchises will be allowed replacement players."
Smith and Warner had each stepped down from the captaincy of Rajasthan Royals and Sunrisers Hyderabad, respectively, but now will not feature in the lucrative Twenty20 competition altogether.
Warner was Hyderabd's leading run-scorer in 2017 and guided his side to the title in 2016.
The left-hander is the tournament's all-time fifth-highest run-scorer and the most prolific overseas batsman in the competition's 10-year history.
While Smith captained defunct Rising Pune Supergiant last season and guided his side to the decider, where they lost by one run to Mumbai Indians.
Cricket Australia's investigation into the Newlands ball tampering incident found that Warner was responsible for "development of a plan to attempt to artificially alter the condition of the ball", and "instruction to a junior player (Bancroft) to carry out a plan".
The former vice-captain was also charged with providing advice to a junior player on how to tamper with the ball "including demonstrating how it could be done".
Warner also misled the Newlands match officials by concealing his knowledge of and involvement in the plan and did not voluntarily report his involvement.
Steve Smith's ban was based on him knowing of the plan but failing to take steps to prevent it.
Further, CA's investigation found that it was Smith that directed "that evidence of attempted tampering be concealed on the field of play" – in other words, Smith told Bancroft to hide the yellow object now known to be sandpaper in his trousers.
Smith was also found to have "mislead match officials and others regarding Bancroft's attempts to artificially alter the condition of the ball" and "misleading public comments regarding the nature, extent and participants of the plan."
Qantas tour of South Africa
South Africa squad: Faf du Plessis (c), Hashim Amla, Temba Bavuma, Theunis de Bruyn, Dean Elgar, Heinrich Klaasen, Quinton de Kock, Keshav Maharaj, Aiden Markram, Morne Morkel, Chris Morris, Wiaan Mulder, Lungi Ngidi, Duanne Olivier, Vernon Philander, Kagiso Rabada, AB de Villiers.
Australia squad: Steve Smith (c), David Warner (vc), Cameron Bancroft, Pat Cummins, Peter Handscomb, Josh Hazlewood, Jon Holland, Usman Khawaja, Nathan Lyon, Mitchell Marsh, Shaun Marsh, Tim Paine, Jhye Richardson, Chadd Sayers, Mitchell Starc.
Warm-up match: Australia beat South Africa A by five wickets. Report, highlights
First Test Australia won by 118 runs. Scorecard
Second Test South Africa won by six wickets. Scorecard
Third Test South Africa won by 322 runs. Scorecard
Fourth Test Wanderers, Johannesburg, March 30-April 3. Live coverage