Leading University was founded in 2001 by industrialist Ragib Ali. Before its permanent campus was established, the university operated out of upper floors of Madhuban market building in Sylhet's Bandar Bazar neighborhood. It would not open its permanent campus until February 2016. In contravention of the law, the university held no meetings of its board of trustees, syndicate, academic council, or finance committee in 2013 or 2014. Students blocked roads as part of the 2015 Bangladesh student protests against VAT on education. By 2018, the university had four faculties and enrollment was 4,692. Approximately 40% of students were pursuing degrees in business administration, 35% in engineering and technology, 10% arts and humanities, and 10% in law. About one fifth of the students were female. Qazi Azizul Mowla assumed the vice-chancellorship on 1 March 2021. Jago News 24 in September 2021 published allegations of financial irregularities within the board of trustees. In March 2023, Azizul said he was locked out of his office by the board of trustees because he had accused the treasurer of corruption. Treasurer Bonomali Bhoumik countered by accusing Azizul of money laundering. In July 2023, the University Grants Commission formed a committee to investigate the university.