This paper deals with the slum upgrading programme of the national capital of India. As will be evident from this paper, while Old Delhi has the problems of metropolitan slums, the new capital city is more affected by its squatter problem caused by the huge migrant labour force in the city. This is a more pressing problem for Delhi planners than the slums that have coexisted with the plush New Delhi since the Mughal period. “To uproot and resettle”, the policy that was being pursued, included various programmes including sites and services etc. To some extent these have made an insignificant improvement on the entire scenario. In the process it has possibly created slums of squatters on highly valuable land and these new settlements would surely be a liability for the future generation. From “uproot and resettle” to “upgrade and adequately settle” is now the approach. The author of the programme has brought this issue to the attention of planners through this paper.