The battalion, which has more than 600 personnel, was told in a scathing letter by a senior officer that it had lost the trust of the head of the army General Sir Patrick Sanders.
The Defence Secretary said the orgy shows the British Army has not changed since the 1990s when it comes to attitudes towards with women as its reported the officers have been sent for STD tests.
Soldiers from the 3rd Battalion the Parachute Regiment of 16 Air Assault Brigade took part in what appeared to be a consensual orgy with a red-headed woman on Merville Barracks, Essex.