The effluents from tanning industries in and around Palar river basin are the major cause of Cr (III) pollution. Forty-five chromium (III) tolerant bacterial strains were isolated from the Palar river basin. Bacillus subtilis VITSCCr01 showed tolerance up to 1500. mg/l and its Cr (III) bioremoval capacity was 64%. Increasing the concentration of Cr (III) increased exopolysaccharide (EPS) production by the bacteria. FT-IR spectral studies confirmed the presence of polysaccharides in the Cr (III) treated bacteria. Adaptation of Bacillus subtilis VITSCCr01 with higher Cr (III) concentration improved the bioremoval capacity to 85%. SEM-EDX showed that the adapted bacteria accumulated high concentration of chromium. Bacillus subtilis VITSCCr01 could be used as a tool for in situ removal of Cr (III) especially in the tannery polluted environment. © 2011 Elsevier B.V.