Active Admin CanCan integration with shared front/backend User model and multi-level autherization

ability.rb

# app/models/ability.rb

# All front end users are authorized using this class
class Ability
  include CanCan::Ability

  def initialize(user)
    user ||= User.new

    can :read, :all
  end
end

active_admin.rb

# config/initializers/active_admin.rb

ActiveAdmin.setup do |config|
  # You don't need to modify any settings here to get CanCan to work
  # Just remember to add CanCan to your Gemfile
  # ...
end

# Below the ActiveAdmin.setup block, I've opened up the ActiveAdmin::ResourceController
# and modified the current_ability method to use a special AdminAbility class.
# Technically you can put this code almost anywere, but I've added it here because
# I think it belongs together with the other Active Admin initializer code.

ActiveAdmin::ResourceController.class_eval do
  protected

  def current_ability
    @current_ability ||= AdminAbility.new(current_user)
  end
end

admin_ability.rb

# app/models/admin_ability.rb

# All back end users (i.e. Active Admin users) are authorized using this class
class AdminAbility
  include CanCan::Ability

  def initialize(user)
    user ||= User.new

    # We operate with three role levels:
    #  - Editor
    #  - Moderator
    #  - Manager

    # An editor can do the following:
    can :manage, Foobar
    can :read, SomeOtherModel

    # A moderator can do the following:
    if user.role?('moderator')
      can :manage, SomeOtherModel
    end

    # A manager can do the following:
    if user.role?('manager')
      can :manage, SomeThirdModel
    end
  end
end

foobars.rb

# app/admin/foobars.rb

ActiveAdmin.register Foobar do
  # This will authorize the Foobar class
  # The authorization is done using the AdminAbility class
  controller.authorize_resource
end

user.rb

# app/models/user.rb

class User < ActiveRecord::Base
  # The order of the ROLES array is important!
  # All privileges are inherited from left to right
  ROLES = %w(editor moderator manager)

  # Privileges are inherited between roles in the order specified in the ROLES
  # array. E.g. A moderator can do the same as an editor + more.
  #
  # This method understands that and will therefore return true for moderator
  # users even if you call `role?('editor')`.
  def role?(base_role)
    return false unless role # A user have a role attribute. If not set, the user does not have any roles.
    ROLES.index(base_role.to_s) <= ROLES.index(role)
  end
end

I tried the above code. My index page /admin/users, still shows me list of all users, Even though for the user that is logged in, I have given him ability to only manage users from his organization.
The permissions work fine for show and edit.
Can someone please help?

I do not know why it is not updated, but nowadays it is recommended to simple the cancan gem with Active_Admin. Here is the link http://activeadmin.info/docs/13-authorization-adapter.html#using_the_cancan_adapter