Feroz Khan built the Sarai (Rest House) in 1637 AD during the reign of Mughal emperor Shah Jahan; hence it was named after the Mughals.
Before the first battle of Panipat, Babur camped at Gharaunda.
The Sarai has a quadrangular shape, with cells on all four sides.
Existing gateways form a part of the Northern and Southern walls, and both of them have three stories.
The gateways are made of ‘Lakhauri’ bricks and decorated with panels, balconies, rounded towers, and angular flutes.