Two players from the Howe of Fife club, near Dundee, have been suspended for two seasons, with 12 others given bans of between six and eight weeks.
Two players were arrested and charged with sexual assault following the incident, which happened after a game two years ago, when a player suffered internal injuries.
Howe of Fife rugby club. Photo: Supplied
But the case did not go to court and was dealt with by way of an alternative to prosecution, known as 'direct measure' in Scotland. Direct measures can include warnings, fines or compensation orders.
The side's coach Garry Horne, the father of Scotland first-five Peter Horne, and president Murdo Fraser have been suspended for a year,
In a statement, Scottish Rugby said "the actions of those involved have absolutely no place in our sport".
Horne and Fraser, who resigned in June after Scottish Rugby launched an investigation, were said by the governing body to have failed to exercise "reasonable and proper control" over the players under their supervision during the incident.
The Howe of FIfe club has a code of standards listed on its website. Photo: Supplied
Howe of Fife is currently in League Division One, the third tier of Scottish rugby and has been fined.
From now on all office bearers, trustees, directors and players over the age of 18 must attend a series of leadership workshops to change the culture of the club.
"The behaviour of those involved in this incident, including several individuals in positions of authority at the club, was completely unacceptable," Scottish Rugby chief executive Mark Dodson said.
"Significant sanctions have been applied and Scottish Rugby will not hesitate to take action against any club, official or player behaving in a similarly unacceptable manner."
-BBC