Not trusting file .hg/hgrc from untrusted user root, group dev

The repository is owned by user root, and group dev

Another user is running hg update on the repository and getting the following messages:

Not trusting file /dev/.hg/hgrc from untrusted user root, group devNot trusting file .hg/hgrc from untrusted user root, group devNot trusting file /dev/.hg/hgrc from untrusted user root, group devNot trusting file /dev/.hg/hgrc from untrusted user root, group devabort: Permission denied: /dev/src/backend/java/com/tt/afr/schedule/service/ScheduleComparator.java

In /etc/mercurial/hgrc, we have:

trusted.users=root

In the home directory of user running hg update, we have this hgrc file:

[trusted]users = rootgroups = dev

User is connecting to server using ssh and running the commands.

What can we do to fix this?