The Frenchman was also disqualified from 15th place at the Putrajaya ePrix in Malaysia where he tested positive for Benzoylecgonine, a metabolite of cocaine.
Formula E said on their website that Montagny had been barred from all forms of motorsport for a period of two years following a decision by the International Automobile Federation's anti-doping committee in Paris.
Montagny, who finished second in the inaugural race of the series in Beijing in September for the Andretti Autosport team, had not contested the result of the dope test.
"Autosport is maybe over for me," the 36-year-old, who raced seven times for the now-defunct Super Aguri F1 team in 2006, told French sports daily L'Equipe at the end of last year.
"I made a stupid mistake, I am guilty," he added.
The sanction expires on Dec. 23, 2016 and the driver was given 21 days in which to appeal against the decision to the Court of Arbitration for Sport.
(Reporting by Alan Baldwin, editing by Tony Jimenez)
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