These guys have started playing dirty all of a sudden. Due to the entire transfer fiasco, I decided to move my domains to ResellerClub. These guys rejected my transfer outright and told me that my service provider is not even recognized.

Their Mail:
"The response given to you by your new provider (which by the way is no ICANN accredited registrar and therefore outsource its registration services) is very unprecise. When a transfer is rejected by the current registrar (in this case, OnlineNIC, Inc.), the new registrar always receive the exact reason given by the current registrar via the registry. Anyway you should contact your new provider in this case as indeed the registrar your new provider is working with has the possibility to dispute the rejection of the transfer of your domain names under the Transfer Dispute Resolution Policy (http://www.icann.org/transfers).
Best regards"

Are any of you'll facing such stupid transfer issues

I have not heard of that one before.

I assume you posted this new thread to document OnlineNIC's latest denials and not because you don't know about the Verizon lawsuit. In case you did not read it, the OnlineNIC lawsuit thread is here:

http://www.webhostingtalk.com/showthread.php?t=745987&page=12

Good luck with your transfers. I am no longer surprised by how low OnlineNIC will go to hold onto domains.