The AHRC took the decision after taking congizance of media reports during recent weeks on 'massive embezzlement' of money in flood control and relief operations.
It has directed the chief secretary of Assam to form a three-member committee to investigate the entire gamut of the working of the Assam Water Resources department, including technical and financial aspects in the worst-flood affected areas.
"There is massive misutilisation of funds in flood control projects. Most of the time, work on projects start around April-May, virtually on the eve of the annual flooding, and then data is shown suggesting that thousands of crores have been spent," a senior AHRC member said.
The chief secretary has been directed to submit the report of the committee's findings within three months.
In recent weeks, various reports have emerged in sections of the media about alleged misutilisation of funds by the water resources department allotted by the Centre and state between 2005-06 and 2011-12.