In this paper, we present a general Gaussian N-relay network by allowing relays to communicate to each other and allowing a direct channel between source and destination as compared to the standard diamond network in Nazaroğlu et al. (IEEE Trans Inf Theory 60:6329–6341, 2014) at the cost of extra channel uses. Our main focus is to examine the min-cut bound capacities of the relay network. Very recently, the results in Uykan (IEEE Trans Neural Netw Learn Syst 31:3294–3304, 2020) imply that the GADIA in Babadi and Tarokh (IEEE Trans Inf Theory 56:6228–6252, 2010), a pioneering algorithm in the interference avoidance literature, actually performs max-cut of a given power-domain (nonnegative) link gain matrix in the 2-channel case. Using the results of the diamond network in Nazaroğlu et al. (2014) and the results in Uykan (2020), in this paper, we (i) turn the mutual information maximization problem in the Gaussian N-relay network into an upper bound minimization problem, (ii) propose a modified GADIA-based algorithm to find the min-cut capacity bound and (iii) present an upper and a lower bound to its min-cut capacity bound using the modified GADIA as applied to the defined “squared channel gain matrix/graph”. Some advantages of the proposed modified GADIA-based simple algorithm are as follows: (1) The Gaussian N-relay network can determine the relay clusters in a distributed fashion and (2) the presented upper bound gives an insight into whether allowing the relays to communicate to each other pays off the extra channel uses or not as far as the min-cut capacity bound is concerned. The simulation results confirm the findings. Furthermore, the min-cut upper bound found by the proposed modified-GADIA is verified by the cut-set bounds found by the spectral clustering based solutions as well.