In the present study, the enrichment and isolation of textile effluent decolorizing bacteria were carried out in wheat bran (WB) medium. The isolated bacterium Providencia rettgeri strain HSL1 was then tested for decolorization of textile effluent in consortium with a dyestuff degrading fungus Aspergillus ochraceus NCIM 1146. Decolorization study suggests that A. ochraceus NCIM 1146 and P. rettgeri strain HSL1 alone re moves only 6 and 32% of textile effluent American Dye Manufacturing Institute respectively in 30 h at 30 ±0.2°C of microaerophilic incubation, while the fungal-bacterial consortium does 92% ADMI removal within the same time period. The fungal-bacterial consortium exhibited enhanced decolorization rate due to the induction in activities of catalytic enzymes laccase (196%), lignin peroxidase (77%), azoreductase (80%) and NADH-DCIP reductase (84%). The HPLC analysis confirmed the biodegradation of textile effluent into various metabolites. Detoxification studies of textile effluent before and after treatment with fungal-bacterial consortium revealed reduced toxicity of degradation metabolites. The efficient degradation and detoxification by fungal-bacterial consortium pre-grown in agricultural based medium thus suggest a promising approach in designing low-cost treatment technologies for textile effluent.