Dr. Babasaheb established Milind Mahavidyalaya in Aurangabad to enable girls and boys to study in an open environment. After tremendous efforts he succeeded in acquiring 165 acres of land for the college from the Hyderabad State. He got an interest free loan of Rs.12 lakhs out of the 1 crore trust funds raised by the Sansthan. The foundation stone of the college was laid on 1st September 1950, by India's First President Dr. Rajendra Prasad.

The buildings of the college were in the ancient Buddhist style of architecture for which Dr. Ambedkar had special appreciation. The Nizam of Hyderabad attended this ceremony which was also attended by about one lakh people from Maharashtra.