According to the belief of Shakti Peethas, Hindu goddess Sati "neck" fell at this place.
Once, Daksha Prajapati who is the son of lord Brahma organised grand yagna (ritual of sacrifice) for which he invited everybody except lord Shiva and her daughter Sati. Although no yagna can be fulfilled without Trinath (Brahma, Vishnu and Maheshwar) he wanted to continue the yagna, it was presided by four prominent Sages. Sati wanted to attend the ritual performed by her father despite lord Shiva’s request of not attending the yagna.
Reason behind Dakshas reluctant to invite lord Shiva is because of his appearance and costumes ( lord Shiva wears tiger skin, apply ashes and puts poisonous snakes and skulls as his garments and always wanders in cremation grounds). Apart from this he is the person behind beheading one of the heads of his father lord Brahma. (Once there was a verbal war between lord Brahma and Vishnu, which lead both of them using deadly weapons of Maheshwar and Pashupat. In order to save this universe Lord Shiva took the form of pillar of fire and destroyed both weapons. In a greed to see beginning and ending of the pillar which was deep into patal and top is into sky, lord Vishnu agreed to get into pataal world and lord Brahma into sky. Lord Vishnu was unsuccessful, lord brahma transformed into swan and flew into sky where he saw one of the flower coming from the top of the pillar, he asked the flower where is the top and its creation, the flower replied that I was from the creation but don’t know its peak. In order to show lord Brahmas superiority, he made an agreement with the flower to speak false statement of lord Brahma reaching the peak. Lord Vishnu genuinely accepted superiority of lord Brahma. Angered with the act of lord Brahma, lord Shiva be headed the head which spoke false and also cursed Brahma that he will not have any temple in any worlds)
Despite lord Shiva saying not to attend the yagna goddess Sati attended the yagna where his father Daksha insulted her and lord Shiva. Unable to withstand the insult goddess Sati fell into the fire of yagna and self- immolated herself. Hearing the news of Sati, lord Shiva became furious and sent his ganas to avenge death of Sati, he also said whoever comes against you can kill all of them. They beheaded the head of Daksha, lord Shiva wandered leaving hopes of life by carrying the corpse of Sati. Seeing Shivas grievance all worlds started suffering, in order to save the worlds, lord Vishnu sliced the corpse of sati. He also said goddess Sati will be reborn as Parvathi daughter of Himavan.
Places where the parts of Sati fell are now called as Shakti Peethas and place where Sati’s Neck fell is Shri Shail, Bangladesh.