Tej was 88. He is survived by his wife and a son.
He was under treatment at a private hospital where he breathed his last, family sources said.
A versatile actor, Tej started his film career in 1954 with the film "Kedar Gouri". After working for two decades as an actor, he debuted as a director in 1979 with Odia film "Ramayana".
Winner of many awards during a five-decade career in the cine world, Tej had received Odisha State Film Award for best actor for "Bandhu Mohanty" in 1977.
Tej was conferred the the prestigious "Jaydev Award", the highest cine award in Odisha, in 1986 for lifelong contribution to the growth and development of Odia cinema.
He also produced "Krushna Sudama" which is still remembered by cine-lovers in the state.
Governor S C Jamir, Union Petroleum Minister Dharmendra Pradhan and others have expressed grief over the death of Tej.
Describing Tej as an outstanding actor and director, Jamir said the artiste was committed to Odia culture and tradition portrayed in contemporary social picture.
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