Banerjee held the sit-in at the Chandaneswar High School ground demanding release of Sarbar's body after addressing party workers.
Sarbar was killed in police firing during an armed clash between CPI(M) and Trinamool Congress workers on Friday.
Later at about 10 pm, she ended her sit-in after the body of Sarbar reached his home.
Banerjee alleged that the police connived with CPI(M) cadres in killing Sarbar "in a planned way", and warned the Marxists that she would no longer tolerate such attacks.
"Sarbar was killed not only by the police... CPI(M) cadres were also with the police during the attack in Bhangar.
"If the CPI(M) thinks that they will kill our activists again and again and we will sit idle, they are wrong. We will agitate democratically," she said.
Banerjee also visited Sarbar's widow and three children at their house. The Trinamool chief assured Sarbar's widow that her party would bear the educational expenses of the three children.
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