Unfortunate with IntelliJ IDEA EAP build
I have moved to the EAP build of IDEA in the middle of my project, and that seems to have messed my project structure. The resources directory is indeed marked as resources label from the gradle, and now it fails to load the resources. Spent 4 hours just to find out that it was the issue of IDEA and not mine.
I verified it again this time by using Gradle from command line, and everything worked perfectly.
Now I had to change my IDE to Eclipse (which doesn't support Android target) and get myself familiar with the new workspace, but with some issues it is now working. Mainly, I had a tough time as I'm habituated to the IDEA's shortcuts for a long time of more than 4 years.
Anyways, I think I cannot compete for the compo, and tomorrow I have college. So I'm moving this to JAM instead.

There you see the game running finally. There is still a lot to work on, and I have to compose the music. There are a lot more entities that are going to be in the game too, followed by a tutorial. Postponing this hence.