Sardar Patel inspired Shri Bhaikaka, who served as Superintendent Engineer in Sindh and Ahmedabad Municipality Corporation (AMC) to go to the villages and work for their regeneration. He thought to improve the human life of villagers through higher learning by establishing institutions of higher education. He got in touch with Shri Bhikhabhai Saheb and started the developmental activities. On 28th March 1945, it was decided to layout and implement the plan of establishing an "Educational Township" which is now known as "Vallabh Vidyanagar".

The founders decided to establish two institutions viz. Charutar Vidya Mandal (CVM) and Charotar Gramoddhar Sahakari Mandal (CGSM). The former was to be devoted to the cause of education, establishing schools and colleges, while the latter meant to produce the building materials for educational institutions and residential quarters. These were registered on August 10, 1945 and September 7, 1945 respectively. Thus, the Charutar Vidya Mandal (CVM) was established with a mission of making a modern and prosperous independent India by regeneration of villages through the establishment of institutions providing a modern education.

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