The invention relates to a biologically pure culture of white rot lignin-modifying fungus Flavodon flavus for simultaneous decolorization and detoxification of molasses spent wash or water/soil contaminated with molasses spent wash. The Flavodon flavus has been deposited at the National Institute of Oceanography, Goa, India, bearing Accession No. NIOCC #312 and has also been deposited at Agricultural Research Service Culture Collection (NRRL), 1815 North University Street, Peoria, Ill. 61604, U.S.A., bearing Accession No. NRRL 30302 on Mar. 10, 2000.
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