It was started by the late Shri Nirankar Swaroop as a non-governmental organisation in the late 1950s to cater comprehensive rehabilitation services to children and persons with disabilities. It started pioneering work of manpower development in the fields of physical and occupational therapy in the northern part of country. This institute came into being when the erstwhile Jawahar Lal Nehru Institute of Physical Medicine and Rehabilitation and other allied institution run by the council for the aid of crippled and handicapped were taken over by the government of India on 22 May 1975 and converted into an autonomous body in 1976. The erstwhile voluntary organisation was taken over by Ministry of Social Welfare in 1975 and converted into a registered society in 1976.