"Shailaja is being barred from all international competition for two years and for one year at the domestic level," IWF secretary Balbir Bhatia said on Thursday.
The 20-year-old, who won the women's 75 kg event last year in Manchester, tested positive for a banned anabolic steroid at a national junior meet in January.
Bhatia said 34 lifters, 23 of them juniors, caught for doping in three national meets since December
There were seven lifters among 21 competitors found guilty earlier this month for doping after being caught at the national games in December, raising fears of widespread doping in the country.
Pujari had faced a life ban for a second offence, but the IWF gave her the "benefit of doubt" following a positive test for a steroid two years ago because only one out of three urine samples collected had shown excessive traces of the steroid.