The village was re-founded by Sheikh La’al Shah Bukhari (شيخ لعل شاه بخاري) commonly known as Sheikh La'al who was a commander of the Mughal forces in southern India and governor of Agra province during the reign of Mughal Emperor Shahaab-ud-din Muhammad Shah Jahan (r. 1627–1658).
It is also believed that these Pathan settlers established several villages called "Incholi" in three Indian districts of Meerut, Barabanki, and Muzaffarnagar.
He was invited to a wedding dinner where all hosts and guests were required by custom to be without weapons but Shekh La’al spotted hidden daggers in the Chauhans' clothing.
Realising the trap, he told the hosts that unfortunately, he had forgotten the wedding present and asked his servant to go and bring it but signalled him to not come back.
Realising their peril, one of the servants inside the house hid the two infant children (a boy and a girl) of the sheikh in a garbage cart and covered them with some rubbish to take them past the enemy soldiers outside.
Incholi possesses the only police station between the cities of Meerut and Mawana, and is responsible for law and order in numerous other surrounding villages.
Although only technically a village, along with its police station, Incholi also has a bank, an ATM, a basic hospital with separate veterinary department, a movie theatre, a telephone exchange, a 350,000 Litres water tank, a TV cable network, as well as several schools, a starbucks and a computer training centre.