"Based on the information provided by the authorities, the contracts of all three players have been suspended pending enquiry," Rajasthan Royals chairman Ranjit Barthakur said in a statement.
"We have already filed a complaint with the Delhi Police against all three players earlier today," he added.
The IPL last week found itself engulfed in a sensational spot-fixing scandal after Sreesanth and two of his Rajasthan Royals teammates were arrested by the police which claimed that they received upto Rs 60 lakh from bookies for bowling one manipulated over.
The IPL today stepped up security for the four remaining teams in the cash-rich T20 league by providing them an officer each from the Anti Corruption and Security Unit (ACSU).
"The security deployment for the team has been expanded, again in close consultation with the BCCI. The franchise is in daily contact with the police authorities in Delhi, Jaipur and Mumbai for providing any cooperation/information that they might require," Barthakur added.
A special cell of the Delhi police arrested Sreesanth and his teammates -- Ajit Chandila and Ankeet Chavan -- in Mumbai last Thursday for indulging in spot-fixing in at least three IPL matches as per arrangements with bookies, who have underworld connections abroad.
Rajasthan said the franchise has "initiated" additional internal measures.
"We have initiated additional internal measures, all developed with the full support of the players at their weekend regroup in Jaipur."
Barthakur further added: "The franchise has been hit very hard across the board, and we have executed the strongest possible course of action in keeping with our zero-tolerance approach to these terrible actions.
"As stated earlier, we will protect the good, as well as seek punishment for the bad."
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