Mahajan, 51, was a recipient of the Sahitya Akademi Award.
She was suffering from pneumonia for the past few days and was undergoing treatment at a private hospital, sources said.
Born on September 5, 1967 at Nanded in central Maharashtra, Mahajan was known for her critically acclaimed novels such as "Brr" and "Bhinna".
Mahajan is survived by her daughter.
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