Space is intertwined with the exercise of power. While exertion of power in the production of space has been frequently studied in democratic political systems, little attention has been paid to non-democratic systems. This study aims to address this gap by focusing on the mega mall development process in Tehran. The study applies a four-dimensional view of power, including over, covert, latent, and disciplinary power, to investigate the exercise of power in the development of mega malls in Tehran. Using a constructivist grounded theory approach; data is collected through 48 semi-structured in-depth interviews and nine documents. The process of mega mall development in Tehran illustrates two levels of power dynamics. Firstly, powerful institutions emerge as winners while citizens lose out. This overt conflict involves monopolized decision-making and the rationalization and legitimization of ‘exceptions’, representing the covert and latent dimensions of power respectively. Secondly, the mega mall itself functions as a Panopticon by exerting disciplinary power. While power dynamics may share similarities across different systems, the distinctive aspect of mega mall development in Tehran lies in the monopolized process and pervasive perception manipulation as the key means of power exertion.