R is unable to detect Rtools

Question

I recently updated to R version 4.0.5.

I have tools installed in C:/rtools40

However, each time I run install.packages("rJava")

I get the following:

WARNING: Rtools is required to build R packages but is not currently installed. Please download and install the appropriate version of Rtools before proceeding:

https://cran.rstudio.com/bin/windows/Rtools/
Installing package into ‘C:/Users/Pragyaditya Das/Documents/R/win-library/4.0’
(as ‘lib’ is unspecified)
trying URL 'https://cran.rstudio.com/bin/windows/contrib/4.0/rJava_1.0-4.zip'
Content type 'application/zip' length 1127320 bytes (1.1 MB)
downloaded 1.1 MB

package ‘rJava’ successfully unpacked and MD5 sums checked

The downloaded binary packages are in
    C:\Users\Pragyaditya Das\AppData\Local\Temp\RtmpuEjxI8\downloaded_package

I get a warning that Rtools is not installed.

To check if rtools is in path or not, I did Sys.getenv("PATH") and I can see that Rtools is in path.

In addition to that, I also installed devtools and did find_rtools(). From this I get TRUE.

I don't know what to do and what to look for.

Please help.

TIA.