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Also, an input into how it would turn out in T2 cities would be appreciated. Thanks.
The amount of work and time you would require to devote depends upon the subject area and your grasp over it. I have had to sometimes just require an hour before the session, sometimes, it took me an entire day to be prepared. Having said that, this also varies depending upon your audience and the line of questioning you expect.
It is safe to say that on a weekend basis, you may easily find time to devote between teaching and your senior's chamber, but this cannot go on a daily basis. Though a friend of mine did manage to pull it off by sacrificing his lunch time and shorting the class length from 1 hour to 45 mins.
So far as the appointment is concerned, mostly, it is on the basis of connecting. You know the guy who is pulling the strings in the University or the Institution or you know a guy who knows a guy.
Given that the above is correct, if you want to even part-time teach, you would have to suspend your license first. Of course you can still do anything as long as you are not reported to the Bar.
There's absolutely no restriction from having a side income as a visiting faculty (for credit courses) or even a contractual employment (guest lecturer). In fact it is one of the perks of getting to be in academia and still making money on the side from your practice.
To answer OP's question, the con is you'll never get any promotion/position (you won't rise up the ranks to become a a Professor/Associate Professor if you do not join as a permanent Assistant Professor). You'll always remain a guest lecturer and won't be considered a serious academic (unless you also make great publications). Some very senior people are completely fine with it, as their only reason is to teach/write for the sake of intellectual satisfaction or some side income. Although as you rise up in litigation, it may become increasingly difficult for you to devote sufficient time to these commitments. If you're okay with all of this, then go for it!
One of the teachers at my CLAT coaching was a litigating lawyer at the Lucknow Bench of the Allahabad High court.
He used to take our contract law classes in the evening when we had the old CLAT pattern.