After the establishment of Servants of the People Society at Lahore in 1921, Lalaji devoted his attention to the upliftment of the untouchables, whose rights he continued to champion till the end of his life. In 1924 he deputed five members of the Society to organize work in the Punjab and the western districts ofthe United Provinces for the betterment of the backward classes. As a result of their findings, an All India Achuttoudhar Committee was formed with its headquarters at Delhi.
The land for Kumar Ashram was donated by a local citizen to the Servants of the People Society to construct a building for starting social activities in Meerut city. The Society started Kumar Ashram in 1924 for the stay of poor children, irrespective of their cast, creed and race, coming to Meerut from the neighbouring villages for higher studies. The intention of Lalaji was to provide equal opportunity to all the students for higher studies. In addition to the normal studies, a Government Leather Institute, producing leather goods, was also attached to the Ashram where industrial training was given to the inmates. The Ashram was visited by Shri Algoorai Shastri, Lal Bahadur Shastri as also by Lala Lajpat Rai himself.
With the passage of time, the Ashram became an important wing of Achuttodhar movement. It worked for the eradication of social evils in the society and for the up-liftment of Harijans in educational, social and economic fields.