Salve said Dhoni gave false statements to the Justice Mukul Mudgal panel, which was probing the role of Chennai Super Kings team principal Gurunath Meiyappan in the IPL betting scandal.
"CSK captain Dhoni is also the vice-president of India Cements, this is how conflict of interest arises," he further argued.
"In face of such allegations Chennai Super Kings must be suspended."
The Supreme Court then suggested that Chennai Super Kings and Rajasthan Royals be barred from the Indian Premier League.
The apex court also proposed that Indian batting legend Sunil Gavaskar should take over from N Srinivasan and be made interim BCCI president till it gives final verdict in the matter.
It further said any person associated with Indian Cements, the owners of Chennai Super Kings franchise, should not be involved with the BCCI.
It asked the BCCI to come up with a response on its proposal on Friday, when it will pass an interim order on the IPL spot- fixing and betting scandal at 1030 IST.
Image: Mahendra Singh Dhoni
Supreme Court proposes Chennai and Rajasthan be barred from IPL
Celebration time for the man who dared take on Srinivasan and the BCCI!
Modi sings in chorus with nemesis Manohar, calls for suspension of IPL 7
'Mr Srinivasan, quit before you drag Indian cricket down the gutter'
'Why talk about removing Dhoni and bring doubts in people's mind?'