Seeing error in event log: License for feature 'SimpleContactManagement' not found.

Getting this in event log. No idea why it is happening. Looks like Smart search is trying to index Contact objects. I have Search index on Contacts. I have EMS license. We are creating/updating contacts using Kentico out of the box Rest api as well. Any idea, in which case it could happen? could it be user level access issue? or it is something related to License?

Event code:PROCESSSEARCHTASK
Description:Cannot obtain object with type om.contact and ID 2317585.
Exception:Message: License for feature 'SimpleContactManagement' not found.
Exception type: CMS.DataEngine.LicenseException
Stack trace:
at CMS.LicenseProvider.LicenseHelperInternal.ReportLicenseError(String redirectUrl, String message)
at CMS.LicenseProvider.LicenseHelper.ReportFailedLicenseCheck(FeatureEnum feature, String domain, Boolean throwError)
at CMS.LicenseProvider.LicenseService.CheckLicense(FeatureEnum feature, String domain, Boolean throwError)
at CMS.DataEngine.AbstractInfoProvider`3.GetObjectQuery(Boolean checkLicense)
at CMS.DataEngine.AbstractInfoProvider`3.GetInfoByColumn[T](String columnName, T value)
at CMS.DataEngine.AbstractInfoProvider`3.GetInfoById(Int32 id, Boolean useHashtable)
at CMS.DataEngine.AbstractInfoProvider`3.CMS.DataEngine.IInfoProvider.GetInfoById(Int32 id)
at CMS.Search.Internal.IndexLogger.LogTaskStart(SearchTaskInfo taskInfo)