Khar said the wider Kiwi Indian community was ignored by organisers and commercial traders used Diwali for "money generation".
Diwali, the Hindu festival of lights, follows the lunar calendar and falls this year on October 30. The preferred date for Auckland's festival in the CBD would be the closest weekend to that date.
Charmaine Ngarimu, Ateed's head of major events, said meetings were held with community representatives last year.
"The advisory group will provide highly valuable advice, including feedback on event development and future growth strategies."
Diwali is an ancient festival that celebrates the triumph of light over darkness and the renewal of life.
Auckland has held Diwali festivals since 2002.
It is the city's second biggest ethnic event behind the Lantern Festival.