Banerjee was crushed to death under the wheel of a trailer near Phuldungri, about 45 kms from here, under Ghatsila sub-division of East Singhbhum district today, police said.
Banerjee (55) was travelling on his motorcycle when the accident took place.
Banerjee was an executive member of Jharkhand Pradesh Congress Committe.
Meanwhile, irate locals and Congress activists put up a road blockade on National Highway 33 following the incident, disrupting the road traffic, police said.
The protesters were demanding adequate compensation to the victim's family and arrest of the trailer's driver.
The road blockade was lifted after over three hours following intervention of Rajya Sabha member and former JPCC president Pradip Kumar Balmuchu.