They weren't relegated to anywhere, they ceased to exist. This conversation has came up so many times on here and I don't know why, it's beyond apples and oranges here.
Allowing a new club to start higher up the pyramid to the detriment of clubs who fairly earned promotion that same season would have been unequivocally wrong. It wasn't a punishment, they were treated how any new club would be treated. Infact, if anything, they were given preferential treatment over The Spartans (IIRC) who were a lowland league outfit at the time and perhaps where Rangers should have been placed - see Gretna.
What I will say is that if we're convicted of having done what we're alleged then we deserve to be serverely punished. I trust the club that we are not guilty in this respect though and this is no more than a witch hunt brought on by a stinking cartel who will undoubtedly have plenty of dirty laundry of their own.