The multi-faculty co-educational institution with its modern and magnificent campus sprawling outside Sunami Gate near Polo Ground, was established by the late Padma Bhushan, Rai Bahadur Seth Gujjar Mal Modi, a business magnate of India, in the fond memory of his illustrious father Rai Bahadur Seth Multani Mal Modi.
 Its foundation stone was laid by Dr Dharam Vira, ICS, the then Governor of Punjab on Sept. 21, 1966 and the first academic session commenced in July 1967. The college is owned and maintained by the magnanimous and enlightened Modi Education Society. Its Chief Patron Dr. K. N. Modi is a great entrepreneur and a man of vision. The progressive and enlightened Managing Committee which runs the College comprises eminent persons from various walks of life. It is headed by its Chairman Seth Sudarshan Kumar Modi who is firmly committed to fulfilling the dreams and ideals of his illustrious grandfather.
 Over a period of three and a half decades, the college has developed into a center of high quality education of practical relevance to the present and future needs of our rapidly changing society. The dedicated and hard work put in by the Principals and the faculty has earned for Modi College a place of pride among the pioneering institutions of the region.
 The College has had the honor of its annual convocations being addressed by eminent personages of the stature of Sh. KR Narayanan, Giani Zail Singh, Dr. DC Pavte, Dr. R. C. Paul, Sh. S. L. Kapoor, and Dr. S. P. Singh.