The Maharashtra government late Wednesday evening announced a probe by a special investigation team (SIT) into the breach in TiwareDam in Ratnagiri district which has led to at least 11 deaths.
The dam in Chiplun tehsil developed a breach late Tuesday night, leading to flooding of seven downstream villages.
While 11 bodies have been recovered so far, officials fear the death toll could mount to 23 as many persons are missing.
"An SIT will probe the breach," said Water Resources minister Girish Mahajan.
The SIT would probe the allegation that officials neglected repeated complaints about leaks from the dam, he said.
"Strict action would be taken against those responsible. The houses which were washed away will be reconstructed in four months," he told reporters at Kamathe in Ratnagiri district after visiting the dam site.
The kin of the deceased will be given Rs 5 lakh, he added.
As per a preliminary report, the dam developed a breach due to heavy rains in adjoining Satara district, the minister said.