The Lala Lajpatrai Memorial Trust was formed in 1959 on the eve of the Birth Centenary Celebration of the Late LalaLajpatrai to work for the objectives which were so dear and near to Lalaji's heart. Through Lalaji was interested in almost all the fields of activities contributing to the enrichment of national and social life, the cause of education was always uppermost in his mind. It was therefore desired by our late Prime Minister Shri Lal Bahadur shastri that the most fitting way to commemorate the memory of the great patriot was to start an institution of higher education.

The actual establishment of the college was made possible due to the allotment of valuable piece of land admeasuring about 26,000 Sq.ft on a fairly nominal rent by the Government of Maharashtra. The good offices and the efforts of Late Shri Yashwantrao Chavan were primarily instrumental in getting the piece of land. The construction of the present huge magnificent building was made possible by the contribution made by the generous philanthropists and donation made by the trustees.

With the formation of the Lala Lajpatrai Institute the next logical step was the establishment of the Lala Lajpatrai College of commerce and Economics. The college which is affiliated to the University of Mumbai is situated at Haji ali on the road named after Lala Lajpatrai.