The AHRC took the decision after taking cognisance of media reports during recent weeks on 'massive embezzlement' of money in flood control and relief operations.
The Commission directed the chief secretary 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, AHRC sources said today.
"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 (of Rupees) 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, there have been various media reports about alleged misutilisation of funds by the Water Resources Department allotted by the Centre and state between 2005-06 and 2011-12.