Induction motors have been intensively utilized in industrial applications, mainly due to their efficiency and reliability. It is necessary that these machines work all time with its superior and unwavering quality. So, In this paper direct torque control (DTC) of three phase induction motor drives is presented because this method is embraced as an approximate control method in drive system especially in footing applications like electrical vehicle and sub way metro that utilized such a machine. The proposed neural based speed controller is important role to produce accurate flux and torque tracking capability compare to conventional PI controllers. Intelligent based controllers are needed to produce the reference torque for DTC. ADALINE network model is developed in neural controller for weight updation process. Here initially dynamic mathematical model is developed and Neuro based DTC for IM is simulated using MATLAB/SIMULINK software.