Decolourisation of crystal violet and malachite green by white rot fungi, Polyporus elegans, Trametes versicolor, Lenzites betulina and soil fungus Mucor mucedo isolated from dye effluent amended soils was studied.  There was no toxic effect of crystal violet on the growth of the four fungi but malachite green showed retardation of growth. Mucor mucedo decolourised 78% of the crystal violet and 65% of malachite green. The white rot fungi showed more than 60% decolourisation of crystal violet and 26 to 57% decolourisation of malachite green. In the process of decolourisation, lignin peroxidase production was high at 15 days incubation by all the organisms. Manganese peroxidase was secreted more after 10 days of incubation and laccase production was high after 15 days of incubation by Polyporus elegans and Trametes versicolor and after 10 days in the case of Lengites betulina.  Mucor mucedo failed to secrete manganese peroxidase and laccase in all its incubations.