The actor denied that he is romantically involved with the Dum Maaro Dum star.
Daggubati told DNA India: "Bipasha is a very sweet girl and these kind of questions leave me flummoxed. She is one of the few friends I have here and she is like family.
"First there was speculation that I was dating her but the truth is that I have absolutely no time to get into that space at all. Nothing is happening on that front, really because I am literally living out of a suitcase."
Daggubati added that he did not celebrate New Year's Eve with the actress, contrary to media speculation.
In November, it was reported that Basu had ordered the rising star to escort her to a party.
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