Answer

Yes — it is a real Jain traditional story, found in Jain Purāṇic literature and later Jain retellings. In this narrative cycle, Mahābala is reborn as Lalitāṅga Deva, and later the same soul appears in the sixteenth heaven, Acyuta/Achyutendra. This story is part of the Jain life-story tradition connected with Ṛṣabha/Vṛṣabha. ( jainqq.org)

Explanation

If by “real” you mean “present in Jain scripture and tradition,” then yes. If you mean “historically verifiable in the modern sense,” Jain texts present it as a sacred religious कथा, not as a modern historical record. Also, different Jain retellings use slightly different wording, but the core story is the same. ( jainqq.org)

Spiritual Understanding

The purpose of this story is to teach the power of right faith, detachment, samādhi-maraṇa / sallekhanā, and the way karma shapes future births. In Jain Dharma, such stories are meant to inspire spiritual progress rather than only describe worldly events. ( jainqq.org)

Takeaway

So, yes — it is a genuine Jain story in the traditional sense. Its spiritual meaning is more important than reading it as ordinary history. ( wisdomlib.org)