Speaker Mata Prasad Pandey informed the House that the committee would be headed by Parliamentary Affairs minister Azam Khan.
It would probe alleged diversion of funds of the district plan during 2011-12.
It would also probe alleged diversion and misuse of funds meant for reimbursement of fees of backward students in engineering and medical institutes during 2010-2011.
Besides Azam, the members of the committee are Ambika Chaudhary (SP), Swami Praad Maurya (BSP), Hukum Singh (BJP), Pradip Mathur (Cong) and Dalbir Singh (RLD).