Tannery effluent was collected from a leather processing unit located at Bantala leather complex, Kolkata and characterized in detail. The effluent showed typical value of COD 6500 mg/L, BOD5 1000 mg/L and Cr+6 content of 70 mg/L. Batch mode bioreactor studies were done with tannery effluent and an effective bacterial consortium was identified and selected depending on the removal of COD, BOD5 and hexavalent chromium. Microorganisms responsible for biodegradation were preliminary identified as Bacillus sp., E. coli (by Gram staining method, lactose fermentation test, EMB agar test). Bentonite clay was used to prepare ceramic ultrafiltration membrane on clay alumina based tubular support.