The most common and most likely answer to this crossword clue is the 7 letter word TBILISI
I've seen this crossword clue in The Guardian
T
B
I
L
I
S
I
More clues leading to the result TBILISI
- Capital consumption is breaking bailiff's heart
- Can it be stopped by Liberal returning capital?
- Capital city is built anew, one having displaced university
- It is odd, welcoming old politician’s comeback – “capital!”
- On retirement I deposit about one billion as capital
- City, stupidly, is built with no university institution
- Capital account without pound in it is abandoned
- Capital, is it raised to acquire business in London initially?
- Is the Italian island phone firm turning over capital?
- Georgian place — does it happen to receive Liberal backing?
Buddy explains!

The straight part
We know that "capital" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case capital = tbilisi.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.