The Crown Office have confirmed that they have opened a criminal investigation into Craig Whyte's takeover of Rangers last May, while Rangers look set to be denied a return to the SPL.
Mr Whyte purchased an 85% stake in the club from Sir David Murray for just £1, but now the Crown Office has confirmed its investigation into "alleged criminality".
The statement, released on Monday, confirms that the decision to open proceedings follows an inspection of financial files, which they received from administrators Duff and Phelps.
The Crown Office statement read: "The investigation into alleged criminality follows a preliminary police examination of information passed to them in February this year by the club administrators.
"The Procurator Fiscal for the West of Scotland will now work with Strathclyde Police to fully investigate the acquisition and financial management of Rangers Football Club and any related reports of alleged criminality during that process."
The newco Rangers club look set to miss out on returning to the Scottish Premier League as two more clubs stated that they will vote against the side's reinstatement. Aberdeen and Inverness Caledonian Thistle have stated their opposition on Monday, joining Hibernian, Hearts and Dundee United in doing so.
Should these clubs vote against Rangers' return, the Glasgow would not be able to muster the eight votes needed to remain in the SPL and would be likely to drop into the Scottish first division