The purpose of this study is to understand the role of social capital in avoiding resettlement. The methodology used in this study is case study. This research is about the settlement in Delhi known as Kathputli colony, where dwellers were avoiding the resettlement. This study is based on the Bourdieu’s theory of social capital i.e. social capital as “the actual or potential resources which are linked to a durable network which provides each member with their mutual support of the collectivity-owned capital with ‘credential’.”(Bourdieu, 1986). The finding indicates that in the implementation process it had affected and damaged their livelihood. In this study social capital plays an instrumental role in avoiding resettlement.