There is no doubt that reciting Qur'an is a great worship and a cause of blessings, but the prevalent practice of Qur'an Khwani include numerous deflections. Reciting Qur'an in a group can be considered as high as a Nafil (non obligatory) worship, neither Fardh (Obligatory) nor Wajib or Sunnah, therefore it is to some extent permissible given the following conditions are met
Condition 1: It should not be considered mandatory to group together at a single place but each person individually recites Qur'an Kareem
Condition 2: Everyone should read only as much as he/she can recite easily
Condition 3: The length of Qur'an Kareem read by a person should not be declared to the person who organized Qur'an Khwani nor it should be announced to other people.
It should not be considered mandatory to complete entire Qur'an, nor it should be mandatory to group at a single place. Every person should read as much as he can read easily
(Excerpt from Legal status of Prevalent Practice of Qur'an Khwani, Mr. Abdul Rauf Sakharwi)
Allah Knows Best,
Darulifta Al-Ikhlas,Karachi.