Manpreet, who is part of the Services Sports Control Board (SSCB), had travelled with the team to compete at the Military World Games in Myungyeong, South Korea.
"Yes, he has pulled out of the tournament," a source in the Army Sports Institute, where SSCB boxers train, told PTI.
He added, "He failed a NADA dope test and it was because of a cough syrup that he was taking for a recent ailment."
The former national champion, who has no past record in doping, won his Asian Games silver medal in the 2010 edition in Guangzhou, China.