Bumblebee,
All of the above things that you pointed are absolutely true! Incorrect information (from my side) could certainly lead to overlong troubleshooting steps.
Also, that's a BIOS motherboard, not UEFI. Could that be causing problems? The newest GPU's tested with that motherboard are the GTX 580/HD6970.
You've mentioned "
that's a BIOS motherboard, not UEFI. Could that be causing problems? The newest GPU's tested with that motherboard are the GTX 580/HD6970."
I couldn't follow that at all. Pardon me for being so less technical. Could you or anyone else elaborate on that?
P.
S - I have some
FANTASTIC news in my next reply as
an update to this ongoing issue.
UPDATE (Good news!!)
Guys, I have GREAT news to give you all.
First of all, let me take this moment to THANK everyone for their time & brainstorming done here to reach a possible outcome. To resolve or to RMA...
It brings me great pleasure to mention, the issue has been RESOLVED as of today morning.
I connected my PC to my T.V using an HDMI (1.3) cable, first checked if the display was picking up on the T.V. Then (while connected) I installed the official AMD driver and was then prompted for a reboot. (As it generally would!)
The magic started during the reboot process. I could see the 'Windows Welcome' screen. I was in disbelief and my mind was going to an euphoric state (a tear of joy from my eye...). I took a long deep breath and gathered my self.
The dream-like state was turning into reality as I saw my beloved desktop screen in sharp and radiant colors, I rechecked that was this really happening!!? The first thing that crossed my mind was the people who suggested swapping the display cable and I wholeheartedly thanked them (silently).
Below are the pics that I took. xD xD and that was a sight that everyone would just love to see.
(The resolution was still 1920x1080. Couldn't go higher).
It wasn't over yet! I had to take the PC back to my room and reattach the old DVI cable. I was thinking to myself, that I'll uninstall the AMD drivers and let it run on the generic drivers with the old cable till I get a new one or a DisplayPort to DVI adapter.
But I was in for another surprise!
The system/gfx card had (maybe, I'm guessing) learnt the display resolution was to be 1920x1080 (the max that my monitor supports) and on this (old) monitor too Windows had fully loaded without an issue.
I remember in the morning, I had turned off HPET from the bios. Haven't (re)enabled it so see if that was causing the issue. Will check on that later.
But man! I'm sooo relieved!!!
No hassles of RMA/replacements. No upgrading of the PSU (damn this Seasonic is GOOOOD!!)
There's one more querry that I have. Should I be getting a DisplayPort to DVI-D & a new DVI cable or should I continue with the same display cable setup. I'll be eventually getting a FreeSync monitor, but sometime in the future. So during that time, should I be concerned about anything (FPS, smoothness, surprise 'no signal' issues)?
Below are the pics that I want to share as well. See the pins on my current DVI cable. Some of those in-between pins are missing (factory default).
Special thanks to -
Regeneration,
eidairaman1,
Countryside,
Tatty_One 
You guys stayed on top of the issue providing me with various ideas!

More screens (camsnaps).