The impact of interface defect states on the recombination and transport properties of charges in asymmetric modulation-doped InGaAs/GaAs quantum wells (QWs) is investigated. Three sets of high-mobility InGaAs QW structures are systematically designed and grown by the metal-organic vapor phase epitaxy technique to probe the effect of carrier localization on the electro-optical processes. In these structures, a built-in electric field drifts electrons and holes towards the opposite hetero-junctions of the QW, where their capture/recapture processes are assessed by temperature-dependent photoreflectance, photoluminescence, and photoconductivity measurements. The strength of the electric field in the structures is estimated from the Franz Keldysh oscillations observed in the photoreflectance spectra. The effects of the charge carrier localization at the interfaces lead to a reduction of the net electric field at a low temperature. Given this, the magnetic field is used to re-distribute the charge carriers and help in suppressing the effect of interface defect states, which results in a simultaneous increase in luminescence and photoconductivity signals. The in-plane confinement of charge carriers in QW by the applied magnetic field is therefore used to compensate the localization effects caused due to the built-in electric field. Subsequently, it is proposed that under the presence of large interface defect states, a magnetic field-driven diamagnetic-Landau shift can be used to estimate the fundamental parameters of charge carriers from the magneto-photoconductivity spectra instead of magneto-photoluminescence spectra. The present investigation would be beneficial for the development of high mobility optoelectronic and spin photonic devices in the field of nano-technology.