Bandyopadhyay, who shot to fame with Kantataar on barbed wire fencing along border, had been suffering from pneumonia for the past two months.
The 45-year old died of multi-organ failure and sepsis and left behind parents and a brother settled in Europe, his family and close friends said.
The end came at around 8:40 pm, his family said.
Bandyopadhyay had earlier been taken to hospital in September after he fell sick and diagnosed with pneumonia during the shoot for 'Sohra Bridge' starring Barun Chanda and Niharika Singh in Cherapunjee.
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Bandopadhyay had directed films including Kagozer Bou, Elar Char Adhyay, Kaantatar, Devaki, Houseful, Nayika Sangbad casting actors like Prosenjit Chatterjee, Indraneil Sengupta and Paoli Dam.
Bandopadhyay got the BFJA award in 2003.
Paoli, who had starred in Kagoozer Bou and Elar Char Adhyay based on Tagore's eponymous novel, was in a state of shock when contacted.
"I am at a loss of words. He was such a good human being," Paoli, busy shooting out of the state, said.