AMC was setup by the dynamic and dedicated late Dr. D.L.N. Murthy Rao, the then Director of All India Institute of Mental Health (now NIMHANS), Bangalore with his wife Mrs. Saroja, as the first volunteer.The need for a service to the intellectually disabled was highlighted due to a lot of children with intellectual disability disorder (IDD) being brought to the mental hospital as the parents/family/society thought them to be mentally ill. It started as a bi-weekly clinic in two rooms spared by the Central Social Welfare Board. Dr. Murthy Rao and his colleagues- doctors and psychologists- helped in running the clinic for the next few years.

In 1962 it was registered as Society under the name The Association For The Mentally Handicapped (AMH). The name was changed according to international trend to The Association For The Mentally Challenged (AMC) in the mid 90s. Through the 57 years of its journey AMC has been addressing the needs of the intellectually challenged and their families and provided leadership by identifying the emerging needs and measures to meet the same.

In 1963 the clinic was shifted to a building in the compound of Smt. GoolKothavala, then Secretary of the institution. The physical space helped in starting the special school.