From the material available on record, including photographs, it is apparent that the children, about 20 of them, were very little and innocent and "their cheeks were forcibly pierced" with 2m long rods, the commission said.
The rights body has also issued a notice to the principal secretary (Home) of the state government to submit a report, within four weeks, on the steps being taken to stop such rituals.
"The officer has also been asked to inform within four weeks about the disciplinary action taken against the erring police officials, who were, admittedly, present at the site and did nothing to stop the criminal act," the rights panel said.
The commission's directions have come after the Commissioner of Police, Greater Chennai, confirmed that such an incident had happened on October 3 last year.
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A photograph showed that the children were made to wear a cap bearing the image of Jayalalithaa and a slogan 'long live Amma'. One girl is seen caught by some persons for the purpose of piercing her cheeks. The incident makes it a clear case of violation of human rights of children, the NHRC said.
However, he had accepted that the incident was a gross violation of child rights and that the police personnel, who attended the bandobast duty on October 3, 2016 in connection with the event had been severely warned.
"He assured that if any such incident is reported in future, action will be taken under the relevant provisions of law against the guilty," the commission said.
The NHRC observed that it failed to understand how the consent of parents, or that of the children for the ritual, can justify the criminal act of piercing children's cheeks with steel rods.