So I just installed Android Studio again after a long time and it asked me to configure the proxy, so I did. I tested the connection and it worked.
Then it asked me
Amending the gradle.properties file did not work for me. What worked was manually setting the proxy in settings. Additionally I also had to enter my user name and password on for the network.
Wish I hadn't seen this post days ago. Would have saved me time and frustration. Glad though that i persevere and found solution on my own. Mades the frustration more palatable.