Gradle 2.7 does not work with the proxy

Please help:

In the proxy environment Gradle is not able to reach out to the remote repository with the proxy configured. The following is specified in the grade.properties:
systemProp.java.net.preferIPv4Stack=true
systemProp.http.proxyHost=172.16.10.10
systemProp.http.proxyPort=8080
systemProp.https.proxyHost=172.16.10.10
systemProp.https.proxyPort=8080
The first option was set to help rectify the issue. However, it did not produce any results.

The error I am getting is The target server failed to respond.

A problem occurred configuring root project ‘test’.

Could not resolve all dependencies for configuration ‘:classpath’.
Could not resolve org.mulesoft.build:mule-gradle-plugin:1.2.2.
Required by:
:test:unspecified
Could not resolve org.mulesoft.build:mule-gradle-plugin:1.2.2.
Could not get resource ‘http://repository.mulesoft.org/releases/org/mulesoft/build/mule-gradle-plugin/1.2.2/mule-gradle-plugin-1.2.2.pom’.
Could not GET ‘http://repository.mulesoft.org/releases/org/mulesoft/build/mule-gradle-plugin/1.2.2/mule-gradle-plugin-1.2.2.pom’.
The target server failed to respond

When I do the packet capture on the interfaces, the only traffic I see is the HTTP GET to the Repo URL with the source of ::1, the destination of ::1 and destination port of 5001. I do not see any traffic to the proxy at 172.16.10.10 on port 8080.