Registered an account with Ionic forums just to say thank you to @codebru and @kazlauskis ! I ought both of you a beer.
@Aniee try this: open (create if not exists) android/local.properties, and add:
sdk.dir=/path/to/your/android_sdk
For example mine says: sdk.dir=/home/matias/Downloads/android
The directory should have subdirectories like build-tools/, tools/, emulator/, platform-tools/, etc… i.e. the directory where you installed or unzipped the android sdk. Hope this helps.