Laxmi returned positive for stimulant methylhexaneamine in a test conducted by National Anti-Doping Agency (NADA) on her 'A' sample taken during early last month's National Inter-State Championships in Chennai.
AFI Secretary C K Valson told PTI that 39-year-old Laxmi has been ruled out of the Championships and sent back home in Andhra Pradesh.
"We have got the intimation from the NADA about the adverse analytical finding and we have pulled her out from the Championships," Valson said.
Laxmi, who will now be put under suspension, faces the prospect of being banned for life as this has been her second dope offence.
She was a 400 meter hurdler before turning a shot putter after she flunked a dope test during the 2002 Hyderabad National Games.