Wine held out in capital city (3,5)
I believe the answer is:
new delhi
'capital city' is the definition.
(I've seen this before)
'wine held out' is the wordplay.
'out' indicates an anagram (out can mean wrong or inaccurate).
'wine'+'held'='wineheld'
'wineheld' with letters rearranged gives 'NEW DELHI'.
'in' is the link.
(Other definitions for new delhi that I've seen before include "'Indian capital (3,5)'" , "somewhere in Asia" , "Lutyens' design" , "big city" , "End while in India, oddly" .)