Police sources also claimed that Sreesanth spent around Rs 7.41 lakh, including payment of Rs four lakh through credit card, within days in Jaipur and Mumbai before his arrest.
The recovery of Rs 5.5 lakh was made from a flat in Lokhandwala in Andheri West at the instance of Abhishek Shukla, who was arrested for allegedly removing money and articles of Sreesanth soon after the cricketer's arrest on May 16.
"On May 14 when Sreesanth paid around Rs 1.95 lakh buying denims and other articles from Diesel Store in Mumbai, Shukla was handling the money. He wanted to become the manager or agent of Sreesanth.
"After the purchase, he took the rest of the money to his flat in Lokhandwala in a black bag," a senior police official said. Shukla had first met the cricketer in Bangalore five-six years ago, he added.
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He also said that Jiju Janardhan, the cricketer's close friend who was also arrested in the IPL spot-fixing scandal, called Shukla on his mobile phone to come to the hotel where he was staying soon after he got to know about Sreesanth's arrest.
"Jiju handed him over Rs two lakh which he took to his home," the official said.
Shukla, who is charged under section 201 (destruction of evidence) of IPC, was granted bail by a local court today.
Sources also said they have collected a total of four bills of Sreesanth. The first one was for Rs 1.70 lakh -- he paid Rs one lakh through credit card and rest in cash.
The fourth one was on May 14 in Mumbai's Diesel store in which he paid Rs 1.95 lakh in cash for apparel.
Altogether, he spent Rs 7.41 lakh, out of which Rs 3.41 lakh was in cash in less than two weeks, police sources claimed. Mumbai Police had earlier recovered Rs 70,000 from Sreesanth's hotel.