The indefinite shutdown in Darjeeling hills will be suspended from Wednesday morning.
Protesters also burnt effigies of Banerjee and vowed to continue their fight for Gorkhaland.
Police recovered more than 300 weapons, including arrows and explosives.
Police earlier fired tear gas shells and lathicharged GJM supporters
While a group led by Binay Tamang wants to end the shutdown, the mainstream GJM, led by its supremo Bimal Gurung, wants the status quo to continue, reports Avishek Rakshit.
Hours ahead of the second-phase strike, Gorkha Janmukti Morcha (GJM) president Bimal Gurung on Monday sought intervention of the Centre for resolving the crisis in the Darjeeling Hills of West Bengal.
Police fired teargas shells and used batons to disperse the crowd.
Most of the coded signals and communications were in Nepali and Tibetan languages.
Ambulance operators were refusing to carry patients due to fear of harassment.
Tamang said, "All schools in Darjeeling will be given relaxation for 12 hours on June 23 to evacuate students from the city."
Hurling petrol bombs and stones, Gorkhaland supporters on Thursday fought pitched battles with police, who broke up protests, bursting teargas shells and baton-charging violent crowds, plunging Darjeeling hills into deeper turmoil.
A parallel meeting called by the Gorkha Janamukti Morcha on Tuesday passed a resolution demanding creation of a separate state of Gorkhaland.
The Gorkha Janamukti Morcha on Friday rejected the West Bengal government's offer for talks on the Darjeeling issue on June 18, saying the agenda of development of the hills was "irrelevant" when the main issue was a separate state of Gorkhaland.
The Gorkha Janmukti Morcha has said it is satisfied with the positive dialogue its delegation had with External Affairs Minister Pranab Mukherjee and hoped it will pave the way for early tripartite talks on the Gorkhaland issue."We are expecting tripartite talks on the Gorkhaland issue soon as the dialogue with Mukherjee was positive," GJM press secretary Benoy Tamang said.
In an effort to gain support for a separate Gorkhaland, leaders of Gorkha Janmmukti Morcha (GJM) on Tuesday met senior BJP leader L K Advani in New Delhi to seek the party's support for the demand.
The Centre on Saturday expressed its willingness for a dialogue with the Gorkha Janamukti Morcha, which in turn declared that Gorkhaland was not a separatist demand.Stating that the government was willing to talk to the GJM, External Affairs Minister Pranab Mukherjee, who held a brief meeting with West Bengal Chief Minister Buddhadeb Bhattacharya, said, "There is no question of creating a separate state of Gorkhaland."
Six members of Gorkha Janmukti Morch were arrested on Sunday for stopping the vehicle of the superintendent of police during the bandh in Darjeeling hills.
Stating that the GJM was seeking appointment with the Prime Minister Manmohan Singh, Union Home Minister Shivraj Patil and the Leader of the Opposition L K Advani, Gurung told PTI from Darjeeling that a delegation, comprising GJM central committee members, would meet MPs of different political parties.
In a climbdown, Gorkha Janamukti Morcha, spearheading an indefinite bandh in Darjeeling hills for the last 10 days to demand Gorkhaland state, on Mondy said it would not use force to enforce the shutdown but a 'janata curfew' would be held as announced from Tuesday.
In a shot in the arm for the Bharatiya Janata Party, two senior leaders of the Asom Gana Parishad on Monday joined the party and the Gorkha Janmukti Morcha pledged support to BJP candidates in West Bengal, including the Darjeeling Lok Sabha seat.
Opposition parties on Tuesday decried the GJM for raising the Gorkhaland demand before Chief Minister Mamata Banerjee at a government programme, with the Communist Party of India-Marxist accusing the Trinamool Congress of having created a 'Frankenstein'.
A 96-hour bandh called by the Gorkha Janmukti Morcha on Monday to press for Gorkhaland in the Darjeeling hills has been withdrawn.GJM general secretary Roshan Giri told PTI from Delhi that the decision was taken after senior Bharatiya Janata Party leaders L K Advani, Sushma Swaraj and Arun Jaitley urged that the shutdown be called off for a normal situation to prevail before the tripartite talks begin in Darjeeling on December 21.However, the indefinite fast will continue.
Security personnel in large numbers were deployed in the hill district of West Bengal after widespread clashes between GJM activists and the police were witnessed on Saturday.
The Gorkha Janmukti Morcha Thursday asked the government to consider its demand for a Gorkhaland state if it takes into consideration creation of a separate Telangana.
After protests by Trinamool Congress, the Centre on Friday promised not to hold any talk with Gorkha Janmukti Morcha without involvement of the West Bengal government and said the recent meeting of the group's leaders with Home Minister Sushilkumar Shinde was "coincidental".
Normal life was hit for the third day in Darjeeling Hills on Friday in response to the indefinite bandh called by the Gorkha Janamukti Morcha to protest police firing at Sipchu in Jalpaiguri district that left two persons dead.
"Nothing short of Gorkhaland is now acceptable for the morcha. No discussion on interim set-up anymore," Gurung told media persons after the GJM meeting at Kumani, on the border of Darjeeling and Jalpaiguri districts.
Responding to West Bengal Chief Minister's appeal to the Gorkha Janamukti Morcha for abjuring violence and sit for talks, a prominent leader of the outfit on Thursday said it was open for dialogue, but only if the agenda is demand for Gorkhaland.
With the Centre conceding to the demand for a Telangana state bifurcating Andhra Pradesh, the Gorkha Janamukti Morcha on Thursday demanded for a separate 'Gorkhaland' should also be allowed and announced a three-day bandh in Darjeeling hills from December 14.
Home Minister P Chidambaram appealed to the Gorkha Janmukti Morcha on Friday to call off its fast-unto-death agitation and create a conducive atmosphere for the December 21 tripartite talks.
Life came to a standstill in all three sub-divisions of Darjeeling district on Monday due to Gorkha Janmukti Morcha's indefinite bandh called to press for a separate state and other demands.
The Gorkha Janmukti Morcha activists demanding release of some of their supporters went on the rampage on Friday, setting ablaze the house of a Gorkha National Liberation Front leader in Darjeeling district and hurling stones at the police when they intervened, leading to a baton charge on them.
Talks between the Gorkha Janmukti Morcha and the West Bengal government on the Darjeeling crisis are expected to take place in Kolkata on June 25.
The Gorkha Janmukti Morcha on Friday said the Gorkhaland Territorial Administration, the new hill council to run the administration in the Darjeeling hills, is a step towards achievement of Gorkhaland, an indication that they are not going back on their demand for a separate state.
The Cabinet Committee on Political Affairs (CCPA) took the decision after the Home Ministry briefed it about the stalemate on the tripartite talks between the Union, the West Bengal government and the GJM, since December last year.
Gorkha Janmukti Morcha president Bimal Gurung and its general secretary Roshan Giri have been named in an FIR filed by the police in connection with the murder of Gorkha leader Madan Tamang. Charges of conspiracy have been brought against the two besides Gurung's wife Asha, the chief of Gorkha Nari Mukti Morcha, the outfit's press and publicity secretary Harka Bahadur Chettri, vice-president Amar Lama and GJM police wing GLP's 'commandant' Ramesh Aley.
With the Gorkhaland agitation going slow following strong measures taken by the administration, the Gorkha Janmukti Morcha on Friday held out an olive branch to the West Bengal government, saying it wanted to clear 'misunderstandings' with it.
"Enough is enough. I have tolerated for eight days. I am very rough and tough. I am giving 72 hours to withdraw the bandh. Do not force me to take strong action," Banerjee told a press conference at the state secretariat.
The Gorkha Janmukti Morcha on Monday demanded Rs 1,000 crore from the Centre for reconstruction work in Kalimpong and other areas of Darjeeling hills affected by the September 18 earthquake.
In a strong message to the Gorkha Janamukti Morcha, Chief Minister Mamata Banerjee on Thursday said that West Bengal and Darjeeling were inseparable.