The National Commission for Women on Friday formed a two-member fact-finding team to look into allegations of auctioning off of girls for loan repayment in Rajasthan's Bhilwara district, it said in a release.

The women's panel said it had come across several media reports about girls being auctioned off to settle disputes over loan repayments in Bhilwara.

It has been reported that in many settlements, girls are sold into prostitution on stamp paper. In some cases, their mothers are raped on the diktat of 'khap' (caste) panchayats for the settlement of disputes, it said.

In its statement, the women's panel called the reported crimes "extremely appalling and traumatising" and said it had constituted a two member fact-finding team to look into the matter.

National Commission for Women Chairperson Rekha Sharma has also written to the Rajasthan chief secretary and demanded urgent action. Sharma has also asked the chief secretary to apprise the commission on the action taken.

The commission has also written to the Director General of Police in Rajasthan to immediately lodge an FIR under relevant sections and arrest the accused at the earliest. A copy of the letter has been sent to the Superintendent of Police in Bhilwara.

Priyank Kanoongo, chairperson of apex child rights body National Commission for Protection of Child Rights, will also visit Bhilwara on November 7 to conduct a detailed probe into the allegations.

Kanoongo said he would look into the nexus of people involved and the number of villages affected.